For AmCham, the concern is that there was possibly an overreach by the Governments of Colombia and the United States.
Between January and October, Colombia exported US$18,052.1 million in non-mining goods, an increase of 9.6%.
After the Government announced changes in the interpretative note of the FTA with the United States to define some differences in investment matters, The Colombian American Chamber, AmCham, expressed its concern about this decision.
The president of AmCham Colombia, María Claudia Lacouture, expressed his position, emphasizing that the governments should have followed the protocol established in the agreement.
“The changes in the definitions of Chapter 10 of the FTA represent substantial modifications to the text of the agreement and They should have followed the established procedure both in the trade agreement and in the Sentence C-252 of 2019 of the Constitutional Court of Colombia”, Lacouture said.
In context: Colombia and the United States signed an interpretative note of the FTA to clarify investment disputes
For AmCham, The concern is that there was possibly an overreach on the part of the Governments of Colombia and the United States. regarding the interpretation of said note of the Free Trade Agreement.
Among the points that the entity highlights is the “restriction of access to international arbitration, as it limits the right of foreign investors to challenge local judicial decisions that could be unfair or inconsistent with the FTA.”
Furthermore, it emphasizes the “elimination of legitimate expectations as a criterion of fair and equitable treatment, which reduces legal certainty and allows governments to change rules without granting prior guarantees to investors.
Another point of concern is focused on the environmental chapter, as it explains that governments may implement environmental regulation measures that may affect the value of investments.
In addition to this, AmCham denounces that “these changes were not submitted to the consideration of Congress or, in the case of Colombia, to constitutional control.”which violates Sentence C-252 of 2019″.
The entity also refers to the impacts that this decision would have on Colombia, highlighting growing uncertainty for foreign investors, judicial situations that could not be challenged in international courts, and impacts on job creation.
What does the agreement say about the modifications to the FTA?
The Colombian American Chamber explained that, according to the principles established in Sentence C-252 of 2019, “the Constitutional Court of Colombia has been clear that any modification to international agreements must respect the following principles”:
• Any substantial modification It must be approved by Congress and subject to constitutional control.
• Interpretative notes They cannot violate protected rights nor affect the sovereignty of the State.
• Investors, unions and local communities must be included in the evaluation of proposed interpretations.
• The interpretations must be aligned with fundamental rights and international treaties ratified by Colombia.
The entity concluded that both The congresses of Colombia and the United States must pronounce against this interpretative note of the FTA since they were not taken into account for said change.
Furthermore, the Constitutional Court must “evaluate both the procedure and the substance of this decision.”
Source: Integrated Information System
