The Colombian government announced that the country will begin the process to withdraw from the international investment arbitration regime, a mechanism that allows foreign investors to submit disputes with States to international arbitral tribunals. The decision was communicated as part of a review of the investment protection framework and the instruments governing investor-State dispute settlement.
International investment arbitration has been used under bilateral investment treaties and trade agreements to resolve disputes related to State measures that may affect foreign investments. These proceedings are commonly conducted before international arbitral tribunals, including the International Centre for Settlement of Investment Disputes (ICSID), a World Bank Group institution that administers cases between investors and States under rules established in investment agreements.
The announcement has generated discussion due to its potential implications for the legal framework governing foreign investment protection and the mechanisms available for resolving disputes between investors and the State. It has also raised questions regarding how the decision may interact with existing treaties and with provisions that establish transition periods for existing investments.
