Bilateral Investment Treaty Between Colombia And Spain

Law 437 of 1998 issued on February 17, 1998 by the Colombian Congress approved the bilateral investment treaty executed on June 9, 1995 between the Republic of Colombia and the Kingdom of Spain for the reciprocal protection and promotion of foreign investment. One of the most important provisions of this treaty is article V in which a protection for foreign investors against expropriation and nationalization practices has been established by granting the investor the right of adequate compensation.

Now this law must be presented by the Government to the Constitutional Court in order to obtain its constitutional approval. The constitutional review is a very sensitive issue in this case since the court has recently overruled the clauses of expropriation and nationalization contained in bilateral treaties executed with Great Britain and Cuba.