05/22/2024
The plenary session of the House of Representatives approved in its fourth and final debate the Agreement for the Promotion and Reciprocal Protection of Investments signed between Colombia and Venezuela in February 2023.
The objective of this Agreement is consolidate a legal instrument that regulates and encourages investments between the two countries and that, in turn, provides a minimum legal framework of guarantees for direct investment between the two nations.
He Minister of Commerce, Industry and Tourism, Germán Umaña Mendoza, He thanked the representatives of the Chamber and in turn the Senate of the Republic for the processing and approval of this initiative, which is a fundamental element in the Government of Change’s purpose of reestablishing, normalizing and strengthening bilateral relations with Venezuela.
“We seek establish a legal framework that facilitates and promotes cross-border direct investments, that promotes the complementary industry of goods and services and stimulates sustainable development, productive diversification, the formation of value chains and the creation of qualified employment,” declared Minister Umaña.
He added that “Our socioeconomic relationship with Venezuela has been historic and this Agreement seeks to ensure that investments arriving in both countries respect labor standards and environmental regulations, prioritizing these two factors.”
Precisely, the president of the National Association of Businessmen of Colombia (Andi), Bruce Mac Master, explained during the plenary session that for the business community it is better to have the Investment Agreement with the neighboring country than not to have it, since not only generates certainty, but also establishes clear rules of the game and protection of investments.
“From the business community we have taken a judicious look at the investment protection agreement with Venezuela. We now find ourselves in a situation where for business it is better to have it than not to have it, because historically situations have arisen that we could have avoided if we had it,” said Mac Master during the plenary session.
And on behalf of the nearly 90,000 productive units found in Norte de Santander, the Manager of Competitiveness of the Chamber of Commerce of Cúcuta, Diego Gómez, explained that this Agreement is vitally important for the region.
“Historically the relationship with Venezuela has had ups and downs But today, when the border is already open, the situation has improved a lot. With this initiative we are going to attract foreign investment to our region, which will bring economic development and with it, social development,” he said.
The minister also reiterated that Colombia seeks to strengthen multilateralism and for the sustainability of a possible world for new generations.
He agreement with Venezuela establishes a dispute resolution system, both between States, through diplomatic channels, and between investors and States.
Specifically, for the latter, it has the dispute resolution mechanism offered by the forum of the United Nations Commission on International Trade Law (UNCITRAL).
It also establishes a equal treatment between Venezuelan and Colombian nationals, under the protection of the national treatment standard, which thus maintains the balance between potential foreign and national investors.
This Agreement will enter into force after passing the examination of the Constitutional Court.
On the other hand, it must be remembered that This Investment Agreement is added to the other Agreements that the two countries have in trade and transportation matters, that is, Partial Scope in commercial matters and the International Transportation of Cargo and Passengers by Road between Colombia and Venezuela.
