Through Which The "agreement Between The Republic Of Colombia And Japan For Liberalization, Promotion And Protection Of Investment", Signed In Tokyo, Japan, Was Approved On September 12, 2011

Original Language Title: Por medio de la cual se aprueba el "Acuerdo entre la República de Colombia y Japón para la liberalización, promoción y protección de inversión", suscrito en Tokio, Japón, el 12 de septiembre de 2011

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ACT 1720 2014
(June 25)
Official Gazette No. 49193 of June 25, 2014 CONGRESS OF THE REPUBLIC

Through which the "Agreement between the Republic of Colombia approved and Japan for liberalization, promotion and protection of investment ", signed in Tokyo, Japan on September 12, 2011. Effective Jurisprudence


THE CONGRESS OF THE REPUBLIC
having regard to the text of the "Agreement between the Republic of Colombia and Japan for liberalization, promotion and protection of investment" signed in Tokyo, Japan, on 12 September 2011.
(to be transliterated: true and complete copy is attached in Castilian the original text of the Agreement, which consists of fifty-eight (58) folios, certified by the Coordinator of the Internal Working Group Treaty of the Directorate of International Legal Affairs Foreign Ministry document that rests in the archives of the Ministry).

BILL NUMBER through which the "Agreement between the Republic of Colombia and Japan for liberalization, promotion and protection of investment", signed in Tokyo, Japan, was approved on September 12, 2011 .
the Congress of the Republic Seen the text of the "Agreement between the Republic of Colombia and Japan for liberalization, promotion and protection of investment", signed in Tokyo, Japan, on 12 September 2011.
( to be transliterated: true and complete copy is attached in Castilian the original text of the Agreement, which consists of fifty-eight (58) folios, certified by the Coordinator of the Internal Working Group Treaty of the Department of International Legal Affairs Ministry Foreign document rests in the archives of the Ministry).

THE PACT COORDINATOR WORKING GROUP INTERNAL TREATY RELATIONS MANAGEMENT OF INTERNATIONAL LEGAL AFFAIRS MINISTRY OF AFFAIRS OF THE REPUBLIC OF COLOMBIA
CERTIFY: That
reproduction of text above is true and complete copy the original text of the Spanish language version of the "Agreement between the Republic of Colombia and Japan for liberalization, promotion and protection of investment", signed in Tokyo, Japan on September 12, 2011, document rests on file Internal Working group Treaty Directorate of International Legal Affairs of the Ministry.
Given in Bogotá, DC, eight (8) days of August two thousand twelve (2012).
The Coordinator of Internal Working Group Treaty Directorate of International Legal Affairs, Alejandra Valencia
GARTNER.
EXPLANATORY STATEMENT. Honorable Senators and Representatives
:
On behalf of the Government, and in accordance with Articles 150, paragraph 16, 189 paragraph 2 and 224 of the Constitution, presented for consideration by the honorable Congress the bill through which the "Agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment", signed in Tokyo, Japan, on 12 September 2011.
strengthen economic ties with Japan approved the third, a leader in technology development and world economic power is an imperative for all developed or developing economy.
The Agreement on the Promotion and Protection of Investments presented to the Congress of the Republic, is an important strengthening of economic relations between Colombia and Japan step.
This agreement also represents an important approach to the Asian Pacific Colombia, which has become one of the most dynamic poles of the world economy, core development and economic growth, the epicenter of trade and investment, leading technological advances and important stage of economic integration and cooperation.
According to the World Investment Report 2011, Japan is the seventh main source of foreign direct investment worldwide [1].
It should also be noted that the Government and the Colombian Congress have been working together for several years to provide every day greater legal certainty and a better business climate, so that better conditions for domestic and foreign investment den in the country. In this regard are the following events:
- Changes have been made to the International Investment Statute (Decree No. 2080 of 2000) intended to ensure the contribution of investment to economic growth and debug procedures investment registration.
This ensures both control by the state as simplicity and clarity of procedures to be performed by the investor to redeem your investment.

- The Honorable Congress has recently approved several treaties with characteristics similar to today is presented for consideration. These treaties, which are mentioned below, also strengthen the conditions in Colombia to attract foreign investment:
Agreements for the Promotion and Reciprocal Protection of Investments with China and India that are coming into force, approved by the honorable Congress through Law 1462 2011 and 1449 2011 respectively.
Likewise, the honorable Congress passed similar agreements concluded by Colombia with Peru (the first agreement was approved via Law 279 of 1996 and 801 of 2003, the agreement depth was approved by Law 1342 of 2009), Spain (Law 1069, 2006), and Switzerland (Law 1198 of 2008), as well as free trade agreements that have a chapter on investment, such as those signed with the United States (Law 1143 of 2003), Chile (Law 1189 of 2008) with Honduras, Guatemala and El Salvador -Triángulo North (Law 1130 of 2008).
Improving the conditions of physical and legal certainty, and the rebound in economic growth have been positively received by foreign investors who recognize Colombia's efforts to improve the investment climate, highlighting the country's favorable conditions to develop their business. The approval by the honorable Congress and the subsequent ratification of the "Agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment ', to encourage the implementation of new mutual investment and encourage foreign investors that nationality to remain in the country. It also represents another milestone in the strengthening of our relations with that country with which we hope to soon start negotiations of a trade agreement last generation.
This paper consists of four parts. In the first, public policy is exposed in foreign investment. In the second, the importance of foreign investment for economic development, based on figures on foreign investment between Colombia and Japan stands out. In the third, the content of the Agreement is exposed and in the fourth, the conclusions are presented.
1. PUBLIC INVESTMENT POLICY.
This agreement falls within the provisions of the National Development Plan 2010-2014 "Prosperity for All" Chapter VII which states, inter alia, that the Government will design a promotion policy, aimed at facilitating the investment of national entrepreneurs and foreigners in Colombia and Colombian investors abroad, and implement a strategic agenda for negotiation of International Investment Agreements (IIA) [2].
However, interest in attracting foreign investment to the country is not limited to the 2010-2014 Development Plan. It is a policy that dates back to 2002-2006 Development Plan "Toward a Community State", where the signing of bilateral investment treaties as a public policy aimed at economic development was raised.
The positive relationship between investment agreements signed with highly capital-exporting countries, such as Japan, and increased flows of foreign direct investment to a country has been analyzed in econometric studies [3] to the conclusion that this type of agreements are not only important tools for economic development of the country, in accordance with the provisions of the national development Plan, but additionally, these agreements allow protecting national investments abroad.
Following these guidelines, the Higher Council for Foreign Trade, 81st Session of March 27, 2007, determined the guidelines for continuing negotiations on trade and investment, giving priority to the search for agreements and, consequently, strengthening relations with those countries that meet certain criteria. In this prioritization, conducted for several countries, the Superior Council of Foreign Trade established Japan as a priority country for both subscription International Investment Agreements to the Trade Negotiations Agenda established for the government.

Consequently, the ratification of Investment between Colombia and Japan is part of a coherent strategy for our integration into the world economy, it creates an atmosphere conducive to Colombian businessmen seek new niche markets in Japan and contributes to Colombia to become a major player in attracting capital flows. The expected increase in foreign investment will have positive effects on economic growth and employment generation.
2. IMPORTANCE OF AGREEMENT FOR COLOMBIA.
Why is it important foreign investment to Colombia?
The process of economic globalization in which all countries are immersed emphasizes the importance of actively integrating the economies of developing countries into the international economy. In turn, Foreign Direct Investment (FDI) daily has become the most dynamic source of resources to finance economic growth in developing countries. This is because foreign investment can contribute to the development of a country to complement domestic investment, increase the tax base, strengthen the bonds of trade and export capacity, generate technology transfers, disseminate skills and expertise and become engine for job creation.
Foreign investors usually introduced in the new, less developed and modern technologies that would otherwise not be available in these economies given that, generally, one of the characteristics of developing countries is a smaller capacity scientific investigation. Likewise, foreign direct investment can finance the opening of export markets for goods and services to international markets, building on the comparative advantages of each country. Similarly, foreign investment helps the domestic economy in creating jobs and training employees, as foreign investors often have a global reach human resources and advanced knowledge in the development of their business two aspects that normally transferred to their branches and therefore encourage the exchange of experts and production staff training.
The potential investors before making the decision to invest review the political, economic and legal factors that allow them to direct their investments to those places that offer the best conditions. It is at this point that regulatory competition is crucial and requires designing policies to attract foreign capital to increase the country's productivity, while constitutional and legal standards are maintained in terms of public policy, labor and environmental protection, among others .
A study by the Foundation for Education and Development called "Impact of foreign investment in Colombia" [4] shows significant conclusions about the importance of foreign investment to the country, namely:
- " foreign direct investment in Colombia has contributed, at least a percentage point of annual growth of GDP on average over the last five years. "
As a percentage, this means that between 2002 and 2007, increasing foreign investment contributed on average by more than 1% to annual GDP growth.
Thanks to the policy of the National Government in attracting foreign investment, in 2011 Colombia reported a record receiving foreign direct investment (FDI). The total amount of foreign investment in the country reached US $ 13,234 million, an increase of 91.8% compared to FDI flows in 2010 [5]. This is the largest amount of FDI in the economic history of the country and exceeds the margin of US $ 10,620 million reported in 2008.
- "Companies with foreign direct investment use more skilled labor".
Our country has become in recent years into a regional center and an export platform for some foreign companies. Several multinational enterprises (MNEs) have carried out streamlining processes and centralized their administrative offices, production, marketing and services (accounting, advertising, etc.) in our country.
The performance of MNEs in Colombia has defined some characteristics of the recipient companies, including greater use of skilled labor is highlighted.

Given the high degree of sophistication of MNEs, generally involved in industrial or commercial sectors of high complexity, it is often the case that these require skilled workers, with sufficient technical knowledge to meet the specific requirements of the economic activity developed.
- "Companies with foreign direct investment pay higher wages."
The business survey by FEDESARROLLO showed that, compared with Colombian companies in the same sector, multinational companies tend to pay higher wages and offer better employment benefits for their employees. The reason would be that MNEs tend to be more efficient and productive, enabling them to invest more in human capital.
- "Companies with foreign direct investment develop more research and development."
The contribution of FDI has resulted in increased industrialization and increased investment in utilities (electricity, telecommunications and infrastructure), mining (coal and ferronickel) in the hydrocarbon sector and the financial sector.
The impact of FDI in these sectors of high demand for capital goods has a direct impact on the renovation and technological upgrading of the country. In Colombia, the recent developments in international markets with the presence of foreign investment creates great opportunities for entrepreneurs in obtaining a proper integrated system of production, distribution and marketing of a globalized market of goods and services [6].
- "Companies with foreign direct investment are more rooted culture of social responsibility."
Social responsibility or corporate responsibility is a concept that originated in Anglo-Saxon business models. Slowly and on behalf of globalization, the theory of liability was spreading worldwide. Colombia is not the exception. The arrival of multinational enterprises (MNEs) entails the implementation of models of good corporate governance, based on the actions of social impact and involvement with the community of the companies.
To the extent that corporate responsibility can modify consumer behavior (who may show preference for products from socially responsible companies), a healthy competition that gives added value to companies that practice is created. Thus, corporate responsibility practiced by MNEs can have the multiplier effect be mimicked by national companies that want to compete with multinationals.
For the above reasons, Colombia continues to focus great efforts and resources to achieve substantial improvements in areas such as physical security, legal certainty and investment climate. According to the Doing Business World Bank report of 2012, in 2011 the country ranked in the 10 leading countries in reforms that facilitate doing business globally and ranked third in Latin America in the ranking of ease of doing business, ranking 42 among 183 countries.
Why is it important to increase investment flows between Colombia and Japan? As mentioned above, Japan is the third world economy, surpassed only by the United States and China, a leading developer and technology. Additionally, the Asia Pacific is one of the most dynamic poles of the world economy, core development and economic growth, the epicenter of trade and investment, leading technological advances and important stage of economic integration and cooperation. In accordance with the World Investment Report 2011, Japan is the main source of investment seventh worldwide [7].
However, capital flows between Colombia and that region of the world are still small. For this reason, the Government has developed several initiatives to approach this region of the world. With this in mind have been negotiated and signed agreements with Korea, India and China and in addition to this Agreement for the Liberalization, Promotion and Protection of Investment between Colombia and Japan, have approaches in the field of trade with this country.
According to figures provided by the Bank of the Republic FDI in 2011, as mentioned, it reached a figure of US $ 13,234 million, representing an increase of 91.8% compared to the figure recorded in 2010 (US $ 6,899). This figure is consistent with the Latin American trend of inflows of foreign investment and is consistent with the policy of attracting foreign investment by the Government.

Meanwhile, investment from Japan in Colombia has had a growing dynamism over the years. Indeed, the cumulative flow of Foreign Direct Investment (FDI) in Japan in Colombia for the period between 2001 and 2011 was US $ 75.7 million.
With respect to cumulative FDI in Asia from Colombia, between 2001 and 2011, Japan was among the 16 countries in that region where FDI comes in second with a 36% within the total Asia was US $ 210.5 million. During the past five years, FDI in Colombia from Japan concentrated mainly in the sectors of trade and mining with a 50 and 41%, respectively.
Now, it has been exposed enough about the benefits that foreign investment reports to Colombia as a recipient country capital, and has stated that increase foreign direct investment is of interest to our country. However, not much to note that due to the bilateral nature of the agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment, Colombian investors in Japan also enjoy the benefits and standards of protection agreed between the two countries.
Colombia has been consolidating as an important country in terms of investments abroad. In 2011 Colombia invested abroad US $ 8,289 million consolidating a stock of foreign direct investment abroad, accumulated between 2001 and 2011, from US $ 28,819 million, representing a growth of 40% over the figure obtained in 2010 , which was US $ 20,530. These figures make clear the potential of the Colombian industry to serve foreign markets through direct investment.
The cumulative FDI from Colombia in Japan for the period between 2001 and 2011, according to balance of payments, was US $ 2.2 million. In the order of countries with the largest cumulative amounts of FDI in Colombia abroad for 2011, Japan is located at No. 37 in the 57 countries where the country has made investments, which means that 0.01 % of cumulative FDI inflows from Colombia abroad is in that country.
It should be said about Japanese investors in Colombia and Colombians in Japan, besides the Agreement gives them legal certainty for the treatment of their investments, treatment offered by the host country at no time be less favorable than granted to its own nationals.
By the arguments set forth in this document, it is beneficial to our country ratification of the Agreement for the Liberalization, Promotion and Protection of Investment to the extent they are strengthening economic ties between the two nations, creating an atmosphere conducive Colombian entrepreneurs to seek new market niches in Japan, and is establishing a climate of security and confidence for Japanese investment. The current situation provides an important opportunity for Colombia, through this Agreement, promotes both input and output flows consolidated investment as promoters economy mechanisms chance.
Given the above, it is clear that this Agreement and other instruments and integration actions, will contribute to the dynamism and strengthening of relations between Colombia, Japan and the Asia Pacific. Then you will come to analyze the content of the Agreement.
3. THE AGREEMENT BETWEEN THE REPUBLIC OF COLOMBIA AND JAPAN FOR LIBERALIZATION, PROMOTION AND PROTECTION OF INVESTMENT.
The main objective sought by States to negotiate a treaty on the Promotion and Reciprocal Protection of Investments (BIT or BIT, for its acronym in English) is to establish a fair and transparent legal framework that promotes investment through the creation of an environment that protects the investor, his investment and related flows, without creating undue investments from the other party to the treaty obstacles. In other words, it seeks to establish clear rules for investors of both parties, to provide mutual protection and safety in the treatment of investments with the aim of creating incentives for attracting foreign investment.

To achieve this objective, related to the treatment that investors (national treatment and most favored nation), standards of responsibility assumed by States with regard to investors of the other State shall be granted commitments laid down in that instrument (minimum standard of treatment), establishing rules for investor compensation in case of expropriation, and transfer of capital related to investment. In addition, through these treaties clear dispute resolution procedures are established.
It is important to note that for a correct understanding and application of the agreement is necessary to define clearly who are the subjects addressed this definition (investor) and what kind of activities or economic transactions will be covered by the same (definition of investment). You should also define other elements necessary to provide greater clarity and effectiveness of the agreement such as the rules for its entry into force, termination and conditions of application in time and space.
For the negotiation of this Agreement, Colombian negotiators took into account the legal, economic and political peculiarities of the country, as well as previous statements by several members of Congress and the Honorable Constitutional Court regarding features Agreements Similar to the present.
Clauses is as compatible with our Constitution and has been referred to the Honorable Constitutional Court when it has had the opportunity to review other laws approving treaties of this nature were reiterated. It was thus, to respect the provisions of Article 100 of the Constitution, the Treaty provides that nothing provided herein shall be construed to prevent a Party from adopting or maintaining measures aimed at preserving public order. Also, it was agreed that the Parties may establish monopolies in accordance with the provisions of the Agreement, and in the case of Colombia in accordance with Article 336 of the Constitution. Likewise, for the treaty to be consistent with Article 58 of the Constitution was agreed that only for reasons of public utility or social interest and in accordance with the law may expropriate investments, provided that there is the payment of prompt, adequate and effective.
Clauses develop commitments are described below:
The Preamble states that the Agreement is to promote investment in order to strengthen the economic relationship between the two countries and create stable conditions, fair and favorable conditions for investments made by investors and economic prosperity of both countries. CHAPTER I


Article 1. Definitions. Definitions.
This includes the definition of "investor", "investment", "company", "area" and "national", among others. This article is incorporated into the Agreement, a definition of investment includes acts that are of investment character (such as acquisition of property, shares, copyright and intellectual property rights, among others). capital contribution, expected profit and risk taking: In addition, the minimum characteristics of an investment are contemplated.
Are excluded from this definition those operations should not be construed protected under the agreement. These are the operations of public debt or external commercial credit (such as credit requested by the State to a private bank), the purely commercial contracts for the sale of goods and services (such as brokerage). Finally, within the definition of investor, it states that the agreement does not apply to investments by persons holding dual nationality. CHAPTER II


Article 2. Investment. National Treatment.
The so-called "national treatment" is established, by which the Parties undertake to treat investments and investors of the other Party as having been made by nationals of the territory, prohibiting any discrimination.
Article 3o. Most Favored Nation.
This article establishes the treatment of "most favored nation" by which a party undertakes to treat investment and investors of the other Party in the same way that investments and investors from a third country is which possibly have additional benefits to those provided by the Agreement.

However, the most favored nation treatment does not apply in respect of dispute settlement mechanisms, or given more favorable agreements under any free trade area, customs union, common market or economic unions, or tax matters, or agreements to avoid double taxation.
Article 4o. Minimum level of treatment.
The "minimum standard of treatment", by which the Parties undertake to treat investors of the other Party in accordance with customary international law, including fair and equitable treatment and full protection and security is established.
The agreement establishes that includes the obligation to ensure access to the courts and administrative tribunals and not deny justice in criminal, civil or administrative proceedings, in accordance with the principle of the "fair and equitable treatment" due process.
The 5th Article. Performance Requirements.
The purpose of Article 5 is to exclude some constraints to foreign investment to end up being a disincentive for implementation and affect the principle of free enterprise.
It states that neither party may impose requirements relating to investment activities of an investor of the other Contracting Party or of a non-Contracting such as export a certain percentage of production, achieve some degree of local content , giving preference to domestic products, to relate the volume of exports to imports, transfer particular technologies (subject to obligations of staff training) or supply exclusively in the territory of one Party the investment product for a specific market, among others.
Also fit similar conditionalities for receiving an advantage or this continued receipt. In this case, the article does not preclude requiring production in its territory is located, services are provided, you train or employ workers, construct or expand facilities or carry out research or development.
Article 6o. Conforming Measures.
This article enshrines exceptions regarding the obligations of National Treatment, Most Favoured Nation, Senior Management, Boards and Performance Requirements regarding current regulations (Annex I Conforming Measures) and in relation to sectors, subsectors or activities subject to subsequent regulatory developments (Annex II Sectors or Activities Excluded). Specifically they were consigned sectors where Colombian law restricts foreign investment: security and defense; and toxic waste; besides maintaining the 40% restriction on foreign investment in television, mainly for reasons of cultural protection.
Specific Conforming Measures for Financial Services Sector, which are excluded from the application of Article of National Treatment appropriations to be made on orders from the offices of the judicial branch, police authorities, sureties are also included, etc. Also excluded from the National Treatment benefits given to certain public entities such as Finagro, Banco Agrario, National Guarantee Fund, etc. Article 7.
. Transparency.
This article provides that the Parties shall make public its rules, decisions of general application and agreements in force and concern or affect investment activities. They should also answer specific questions promptly the other Party. However, it is clear that none of the provisions of this article shall be construed to require any Contracting Party to disclose confidential information. Article 8.
. Measures against Corruption.
Establishes that the Parties shall ensure that measures and efforts to prevent and combat corruption in relation to the matters covered by the Agreement taking. Article 9.
. Entry, stay and residence.
This article provides that each Party shall give due consideration to requests for entry, stay and residence of nationals of the other Party who wish to enter and stay for the purpose of performing investment activities.
Article 10 Senior Management and Boards of Directors.
The first paragraph of Article prevents the Parties require specific nationality to individuals to fill senior management positions in a covered investment (eg. In a company established by a Japanese investor in Colombia).

The second paragraph allows, however, when it comes to most people of a Board of Directors or any committee thereof, the Party may require certain nationality or place of residence, provided this does not materially impair the ability the investor to exercise control over its investment.
Article 11. Expropriation and Compensation.
This article establishes the requirements for the admissibility of expropriation or nationalization direct or indirect, that the subject is of public utility or social interest; that the measure is non-discriminatory; which is made by prompt, adequate and effective compensation; that due process is respected and is performed under the Minimum Standard of Treatment.
The second part of that article sets out the characteristics of compensation: to be paid without delay; corresponding to the fair market value before the expropriation; which is not affected by the decline in value following the announcement of a future expropriation; and that is realizable and transferable. The provision also develops related to the payment of interest and exchange rate regulation.
Finally, the article excludes from its application the compulsory licensing within the framework of the TRIPS [8] agreement.
Article 12. Treatment in Case of Strife.
Establishes that the Parties shall accord to investors of the other Party treatment no less favorable than that accorded to its own investors or investors of a non-Contracting Party, as regards restitution, indemnification, compensation or any other solution when they have suffered loss or damage as a result of armed conflict, revolution and insurrection, among others.
It also states that any payment in the settlement will be effectively realizable, freely transferable and freely convertible.
Finally, paragraph 3 clarifies that in the case of measures relating to subsidies Parties shall not guarantee the granting of treatment no less favorable than that accorded to its own investors or investors of a non-Contracting Party.
Article 13. Subrogation.
This provision seeks to prevent an investor who has already been compensated by an insurance against non-commercial risks, such as political risks, sue the State seeking this also compensated. It also seeks the contracting party or designated by the agency, have, by virtue of subrogation, entitled to exercise the rights, demand the claims of the investor and assume the obligations related to the investment to the same extent that the investor .
Article 14. Transfers.
This article establishes a reciprocal framework in which all transfers be made freely and without delay. Such transfers include several detailed such items as capital contributions, profits, dividends, interest, royalties, technical assistance, sale or liquidation of the investment, etc.
Similarly, the use of freely usable currencies at the prevailing at the time of transfer stipulated change.
Article 15 General and Security Exceptions.
This article provides a safeguard of the regulatory power of the state is set to take certain measures if they meet the requirement not discriminate between investments or investors, or do not constitute a disguised restriction on international trade or investment.
Such measures are those relating to the protection of human life plant, animal, or ensuring compliance with laws and regulations that are not inconsistent with the Agreement and the conservation of exhaustible living and non-living natural resources; necessary to protect public morals or to maintain public order; measures for the prevention of deceptive and fraudulent practices; measures for the protection of individual privacy related to the processing and dissemination of personal data and the protection of confidentiality of records and personal accounts; measures imposed for the protection of national treasures of artistic, historical, archaeological or cultural and measures deemed necessary to protect essential security interests of the Parties value.
Article 16 Temporary Safeguard Measures.
To respect the autonomy of the Central Bank, it was agreed that in circumstances of problems or threats to the balance of payments difficulties or threats to macroeconomic management, may temporarily restrict transfers.
Such restrictions must be non-discriminatory, of limited duration, consistent with the Articles of Agreement of the International Monetary Fund and promptly notified.
Article 17. Prudential Measures

Another safeguard consistent regulatory power of the State the power to adopt related measures to maintain the stability of the financial system is established. Such measures have a preventive or prudential nature and aim to maintain the strength and integrity of financial institutions.
Article 18. Intellectual Property Rights.
As an adequate system of intellectual property rights is one of the determinants of investment incentives, the agreement provides that the Parties shall promote appropriate, effective and non-discriminatory intellectual property rights protection in accordance with this Agreement, the TRIPS Agreement which Colombia is a party and other international agreements to which the Parties are party.
Addition clarifies that the obligations of the Parties to accord most favored nation treatment relating to the protection of intellectual property rights under existing international agreements to parties not repealed.
Article 19. Taxation.
This article stipulates that the Treaty shall not apply in tax matters, except 1st and 3rd paragraphs of Article the 7th (transparency) and Article 11 (Expropriation and Compensation).
Also provides that if an investor claims that a tax measure is an expropriation or was presented a violation of article 7, it may refer the matter to dispute resolution investor-state following the procedure prescribed in the agreement.
Article 20. Joint Committee.
This article provides for the establishment of a Joint Committee, its functions and powers, in order to carry out the objectives of the Agreement.
Article 21. Measures on Health, Safety, Environment and Labour.
Establishes that the Parties shall repeal or waive the measures that reduce their labor standards or relax standards on health, safety or environment exist as an incentive for the establishment, acquisition or expansion of investments of the other Party or a Party non-Contracting.
Addition gives the parties the right to adopt, maintain or enforce the measures it deems appropriate to ensure that investment activities are carried out in accordance with environmental laws.
Article 22. Denial of Benefits.
In essence, Article 22 seeks to prevent through a kind of triangulation, to benefit from investment protection rules, investors from third countries with which the party denies benefits no diplomatic relations, or maintains measures that would be violated or circumvented if the benefits of this Agreement is conferred on the company or its investments.
Article 23. Special Formalities and Information Requirements.
This article clarifies that the national treatment principle can not be interpreted to prevent them from adopting or maintaining measures prescribing special formalities in connection with investment activities of investors of the other Party, including among others, the requirement that investors be residents of the Party and provide routine information concerning these investments. Additionally
states that must protect confidential business information. CHAPTER III

Settlement of Disputes between the Contracting Parties
In case of conflict between the two Contracting States concerning the interpretation or application of the Agreement, this will be resolved, if possible, through consultations. If the dispute can not be resolved in 60 days, this may be submitted to a court of arbitration appointed by mutual agreement of the parties.
In addition, the chapter includes an article in which the limitation established claims regarding disputes relating to financial services and activities or services that are part of a public retirement plan or social security system.

CHAPTER IV Settlement of Disputes between a Contracting Party and an Investor of the other Contracting Party
This chapter establishes the procedure for settling disputes arising between any State and investors of the other State.
In general, the agreement provides that once out of the phases of consultation and negotiation, shall have a minimum duration of six months, an investor can submit their differences with a party to arbitration under the ICSID Convention, the ICSID Additional Facility , the rules of UNCITRAL or other ad hoc mechanism agreed upon by the parties of a dispute.

Some measures of the 7th Article (transparency) have not submitted to arbitration under this chapter, or those related to anti-corruption measures (Article 8) and entry, stay and residence (article 9).
Beyond the particularities of the agreed standards, the focal point of this section is the possibility of resolving a dispute between the investor and the recipient of State investment through international arbitration. This possibility has been recognized in past International Investment Agreements approved by the Congress and positively reviewed by the Constitutional Court. CHAPTER V


Final Provisions Article 42 Titles.
Clarifies that the titles of the chapters and articles are inserted for convenience of reference only.
Article 43. Entry into Force and Application.
It is noted that the treaty will enter into force 30 days after the Governments of the Parties notify each other through diplomatic channels on the completion of their respective internal procedures necessary for the entry into force.
The Agreement shall remain in force for an initial period of ten years, after that period, shall continue in effect unless terminated by either Party.
Additionally, this article provides that the Agreement shall apply to all investments by investors of one Party who have been legally established, acquired or expanded in the other Party, regardless of when they were established, acquired or expanded such investments.
Article 44. Amendments.
Provides that the Agreement may be amended by agreement between the parties. Amendments must be approved by the Contracting Parties in accordance with their respective internal procedures.
4. CONCLUSIONS.
The agreement that the National Government to the consideration of Congress is important to stimulate the flow of mutual investments between Colombia and Japan tool. It serves as a mechanism for promoting investment in Japan in Colombia and for the protection of Colombian investments in Japan. It contributes to the generation of own advantages of foreign capital inflows such as technological innovation, knowledge transfer, job creation and economic and social development of the country, thus achieving support the process of modernization of the Colombian economy and proper integration of the country into the global market.
With the implementation of investment promotion policies designed in conjunction with the Congress, and in which this agreement falls, Colombia is offering foreign investors a clear message of acceptance of international standards protection of investments. Gentlemen
Congressmen, Colombia has a strategic geographical position in the continent, is a country favored by nature and we have an exceptional human resource.
However, factors of physical and legal uncertainty have moved away foreign investment in our country. For this reason we must move in a joint effort to existing foreign investment to consolidate and serve to promote future investment and to protect Colombian investors who have ventured to open new markets in other countries.
Given the above reasons, the Government, through the Minister of Foreign Affairs and the Minister of Commerce, Industry and Tourism, respectfully requests the honorable Congress to approve the bill by which the "Agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment", signed in Tokyo, Japan, on 12 September 2011.
of the honorable Senators and Representatives approved | || The Minister of Foreign Affairs Maria Angela Holguin
CUÉLLAR.
The Minister of Commerce, Industry and Tourism, Sergio Diaz-Granados
GUIDA. RAMA

PUBLIC POWER EXECUTIVE PRESIDENCY OF THE REPUBLIC
Bogotá, DC, July 19, 2012. Authorized
. Submit for consideration by the honorable Congress for constitutional purposes.
(Sgd.)
CALDERON JUAN MANUEL SANTOS Minister of Foreign Affairs,
(Sgd.) Maria Angela Holguin Cuellar. DECREES
:
ARTICLE 1o. To approve the "Agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment", signed in Tokyo, Japan, on 12 September 2011.

Article 2.
. In accordance with the provisions of article 1 of Law 7 of 1944, the "Agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment", signed in Tokyo, Japan on September 12, 2011, that article 1 of this law is passed, it will force the Republic of Colombia from the date on which the international link is perfect therefrom.

ARTICLE 3. This law applies from the date of publication.
Given in Bogotá, DC, honorable
Presented to Congress by the Minister of Foreign Affairs and the Minister of Commerce, Industry and Tourism.
The Minister of Foreign Affairs Maria Angela Holguin
CUÉLLAR.
The Minister of Commerce, Industry and Tourism, Sergio Diaz-Granados
GUIDA.

LAW 424 1998 (January 13)
why tracking the international agreements signed by Colombia is ordered.

The Congress of Colombia DECREES:
ARTICLE 1o. The National Government through the Foreign Ministry presented annually to the Second Committee on Foreign Affairs of the Senate and House, and within the first thirty calendar days after the legislative session that begins each July 20, a detailed report on how they are fulfilling and developing the existing international agreements signed by Colombia with other States. Article 2.
. Each branch of the National Government responsible for implementing international treaties within their competence and require reciprocity in them, will communicate the relevant information to the Ministry of Foreign Affairs and east to the Second Committees.
ARTICLE 3. The full text of this law shall be annexed to each and every one of the international conventions that the Ministry of Foreign Affairs present to Congress.
ARTICLE 4. This law governs from its promulgation.
The President of the honorable Senate,
Amylkar ACOSTA MEDINA.
The Secretary General of the honorable Senate,
PUMAREJO PEDRO VEGA.
The President of the honorable Chamber of Representatives,
CARLOS ARDILA BALLESTEROS.
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
TAFUR.
REPUBLIC OF COLOMBIA - NATIONAL GOVERNMENT
published and execute.
Given in Santa Fe de Bogota, DC, 13 January 1998.

Ernesto Samper Pizano Minister of Foreign Affairs, Maria Emma Mejia
VÉLEZ. RAMA

PUBLIC POWER EXECUTIVE PRESIDENCY OF THE REPUBLIC
Bogotá, DC, July 19, 2012. Authorized
. Submit for consideration by the honorable Congress for constitutional purposes.
(Sgd.)
CALDERON JUAN MANUEL SANTOS Minister of Foreign Affairs,
(Sgd.) Maria Angela Holguin Cuellar. DECREES
:

ARTICLE 1o. To approve the "Agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment", signed in Tokyo, Japan, on 12 September 2011.
Article 2.
. In accordance with the provisions of article 1 of Law 7 of 1944, the "Agreement between the Republic of Colombia and Japan for the Liberalization, Promotion and Protection of Investment", signed in Tokyo, Japan on September 12, 2011, that article 1 of this law is passed, it will force the Republic of Colombia from the date on which the international link is perfect therefrom.

ARTICLE 3. This law applies from the date of publication.
The President of the honorable Senate of the Republic, Juan Fernando Cristo
BUSTOS.
The Secretary General of the honorable Senate,
GREGORIO Eljach PACHECO.
The President of the honorable House of Representatives, HERNÁN
PENAGOS GIRALDO.
The Secretary General of the honorable House of Representatives,
JORGE HUMBERTO SERRANO MANTILLA.
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, June 25, 2014.

CALDERON JUAN MANUEL SANTOS Minister of Foreign Affairs Maria Angela Holguin
CUÉLLAR.
The Minister of Commerce, Industry and Tourism
ARROYO SANTIAGO ROJAS.

* * * 1. UNCTAD, "World Investment Report on 2011: non-equity modes of international production and development", p. 9.
2. National Development Plan 2010-2011, "Prosperity for All". Presidency of the Republic. National Planning Department, p. 514.

3. Salacuse, Jeswald W .; Sullivan, Nicholas P. "Do BITs really work ?: an evaluation of Bilateral Investment Treaties and Their grand bargain", Harvard International Law Journal; p. 105; Harvard University Press, Winter 2005. See also UNCTAD, "Bilateral Investment Treaties in the mid-1990s," UN Doc .; UNCTAD / ITE / IIT / IIA / 7, page 110, (1998).
4. FEDESARROLLO. "Impact of foreign investment in Colombia" December 2007. www.fedesarrollo.org.co/wp-content/uploads/2011/08/Impacto-de-la-inversi%C3%B3n-extranjera-en-Colombia- Report- Final-Proexport-Dec-of-2007-_Impreso_.pdf
5. Source: Bank of the Republic. For 2011, foreign investment in the oil sector was US $ 5,083 million, an increase of 82.3% over the previous year, was followed by the mining and quarrying sector admitted to US $ 2,621 million. These two sectors accounted for 58.2% of total FDI.
Commerce restaurants and hotels sector, with US $ 2,264 is ranked third in importance.
6. In 2004 UNCTAD, "World Investment Report on 2004: The shift towards services", mentioned that foreign investment was experiencing a shift towards services market.
7. UNCTAD, "World Investment Report on 2011: non-equity modes of international production and development", p. 9.
8. The exclusivity inherent in most intellectual property rights gives its owner the legal power to prevent third parties from using, producing or selling the invention, mark or copyrighted work. That power is not absolute. Article 30 of TRIPS allows for exceptions, which are regulated by Article 31 of the same agreement and include compulsory licensing.
The granting and effective exploitation of a compulsory license may limit the economic benefits that the patentee can get. Therefore, it is necessary to state that the grant of a compulsory license can not be subject to claims for expropriation.

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