Business and Regulatory Environment

Description

The World Bank Doing Business Report (2013) ranked Colombia 43rd out of 189 economies, which is 57 points higher than the regional rank. Among its 10 categories, Colombia’s level of investor protection is ranked 6th in the world. In order to protect investors, Colombia is party to the Multilateral Investment Guarantee Agency, the International Centre for Settlement of Investment Disputes and the Overseas Private Investment Corporation. Each of these agreements constitutes an important mechanism for the protection of foreign investment. Moreover, Colombia has negotiated or ratified up to 24 bilateral Agreements on the Reciprocal Promotion and Protection of Investments which aim to secure foreign investment by setting protection standards such as fair and equitable treatment, prohibition of unlawful expropriation, dispute resolution mechanisms such as state-investor international arbitration. Together with sound regulatory framework, Colombia widely liberalized its market to foreign investors. According to the United States Investment Climate Statement (2013) on Colombia, the country lifted controls on remittance of profits and capital, and allowed foreign investment in most sectors from the early 1990s. Liberalization has progressed furthest in telecommunications, accounting/auditing, energy, mining, and tourism, and to a lesser extent in legal services, insurance, distribution services, advertising, and data processing. However, its performance in enforcing contracts is poorly ranked at 155th. Foreign investors have found the arbitration process in Colombia complex and dilatory, especially with regards to the enforcement of awards. In October 2012 the new National and International Arbitration Statute entered into force. The Law is modeled after the United Nations Commission on International Trade Law and designed to provide a more complete and clear set of rules for national arbitration and international arbitration.

The Business Environment: Doing Business

Multilateral Trade Instruments

Abstract


The Trade Treaties Map tool is a web-based system on multilateral trade treaties and instruments designed to assist trade support institutions (TSIs) and policymakers in optimizing their country's legal framework on international trade

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