Colombia WT/TPR/S/265/Rev.2 
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  II. TRADE AND INVESTMENT REGIME 
(1) OVERVIEW  
1. Colombia's trade policy continues to be g eared towards Latin American and Caribbean 
integration as well as the strengthening of trade and inv estment flows with the rest of the world.  It is 
vitally important to Colombia to maintain an open trade regime in the framework of a transparent, 
predictable and inclusive multilateral system that  is complemented by regional and bilateral 
endeavours.  Colombia has therefore participated in a range of negotiations to deepen the existing 
bilateral and regional agreements (Cuba, Chile, Mexico, Northern Triangle of Central America) in the 
framework of the Latin American Integration A ssociation (LAIA) and has signed new agreements 
(Canada, EFTA, the United States and the European Uni on) so as to secure stable preferential access 
to strategic markets.  In addition, Colombia is currently negotiating free tr ade agreements with the 
Republic of Korea, Panama and Turkey. 
2. However, within its trade policy strategy, Co lombia attaches special importance to its 
participation in the WTO, with a view to creatin g a multilateral system with clear and transparent 
rules that support the integration of the devel oping countries into the international economy.  
Colombia is a founding member of the WTO and t ook part in the negotiations on telecommunications 
and financial services following the Uruguay Round;  it signed the Fourth and the Fifth Protocols to 
the General Agreement on Trade in Services.  Colombia is an observer in the Committee on 
Government Procurement.  During the period under review, Colombia participated in 20 disputes 
within the framework of the WTO Dispute Settle ment Body:  once as a complainant, twice as a 
respondent and 17 times as a third party.  Colomb ia has supported the swift and balanced conclusion 
of the Doha Round, which it considers necessary to  achieve more open, undistorted markets and to 
strengthen the multilateral system.  Colombia atta ches the utmost importance to the reform of 
agriculture. 
3. Colombian legislation accords national treatment to foreign investment.  Most sectors are 
open to foreign investment, barring a few in which Colombia maintains limitations or prohibitions.  
Besides, the State may determine areas in whic h only one company may provide services exclusively 
for a specified period of time.  All foreign invest ment must be registered with the Bank of the 
Republic.  Registration is necessary to enable investors to repatriate and/or reinvest the profits on their 
investment.  Foreign investments do not require prio r authorization, except for direct investments in 
the financial and hydrocarbons and mining sectors, as  well as portfolio investments, which fall under 
a special investment regime.  Colombian or foreign direct investors may sign a legal stability contract 
with the State, which guarantees that the legal pr ovisions under which the investment was made will 
continue to apply for the duration of the inv estment, regardless of any amendments to those 
provisions. 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
(i) Institutional and legal framework 
4. Colombia is a social state guided by the rule of law, organized in the form of a unitary 
republic.1  Colombia's territorial organisation consists of departments, municipalities, districts and 
indigenous territories.  In principle, those terr itorial entities have the following rights:  to govern 
themselves under their own authority;  to administer  their resources;  to establish the taxes necessary 
for their operation;  to participate in national revenu es;  and to exercise the jurisdictions appropriate to 
                                                      
1 Article 1, Political Constitution of Colombia (1991). WT/TPR/S/265/Rev.2 Trade Policy Review 
Page 24 
  
  them.2  The distribution of powers between the central  government and the territorial authorities was 
determined in 2011 in a basic law, which prescribes that international trade is the purview of the 
central government.3 
5. The Legislature is the Congress, which compri ses the Senate of the Republic and the 
Chamber of Representatives.4  The 102 senators and 166 representa tives are elected simultaneously by 
universal suffrage for a term of four years and may be re-elected. 
6. The Executive comprises the National Govern ment and the Departmental Entities.  
The National Government consists of the President, the ministers5 and the directors of administrative 
departments.6  The President of the Republic is the Head of State, Head of Government, and the 
supreme administrative authority.7  The President is elected by universal suffrage for a four-year term 
and may be re-elected once.8 
7. The Judicial Branch comprises the Supreme Co urt of Justice, the Council of State, the 
Constitutional Court, the Higher Council of the Judici ary, the Office of the Prosecutor General and the 
courts.  The Constitution also assigns judicial du ties to the authorities of indigenous peoples.9 
8. The Constitution takes precedence over any othe r law.  In the event of incompatibility 
between an agreement - including trade and economi c integration agreements - and the Constitution, 
the political authorities must amend the agreement or  reform the Constitution so as to eliminate that 
incompatibility. 
9. Laws are issued by the Congress and then ratif ied and promulgated by the executive.  Bills 
must be approved by both Houses of Congress, after which they go to the executive for ratification.  
In the absence of any objection to a bill, the execu tive orders its enactment as a law.  The President 
may object to bills on the grounds that they are " unconstitutional" or "unsuitable" and return them to 
Congress in keeping with the timeframes stipulated in the Constitution.10  If a bill is rejected as 
unconstitutional, it is submitted to the Constitutional C ourt for its decision.  If the Court approves it, 
the President must ratify and enact it into law.  Bills returned as "unsuitable" may become law, 
however, if the Congress approves them a second time.11  Should the President of the Republic not 
                                                      
2 Article 287, Political Constitution of Colombia. 
3 Organic Law No. 1,454 of 2011. 
4 Article 114, Political Constitution of Colombia. 
5 There are currently 16 ministries:  Interior;  Labour;  Justice and Law;  Foreign Affairs;  Finance and 
Public Credit;  National Defence;  Agri culture and Rural Development;  Health and Social Welfare;  Mining and 
Energy;  Commerce, Industry and Tourism;  National Education;  Environment and Sustainable Development;  
Housing, Urban and Territorial Affairs;  Information Technologies and Communications;  Transport;  and 
Culture (online information from the Office of the President of the Republic of Colombia, " Gobierno ".  Viewed 
at:  http://wsp.presidencia.gov.co/Paginas/Presidencia.aspx). 
6 In accordance with Article 11 5 of the Constitution, governorates and mayoralties as well as 
supervisory authorities, public establishments, and state- owned industrial or commercial enterprises are part of 
the executive branch. 
7 Article 115, Political Constitution of Colombia. 
8 Re-election was introduced by means of a constitutional reform implemented through Legislative Act 
No. 2 of 2004, Article 2. 
9 Article 246, Political Constitution of Colombia. 
10 Article 199, Law No. 5 of 1992.  The Executive shall have a six-day time-frame for returning, 
together with its objections, any bill consisting of 20 articles or less;  a ten-day time-frame for a bill containing 
21 to 50 articles;  and up to 20 days if it comprises more than 50 articles. 
11 Articles 166-168, Political Constitution of Colombia. Colombia WT/TPR/S/265/Rev.2 
 Page 25 
 
 
  ratify the laws in the terms and in accordance with the stipulations of the Constitution, they will be 
ratified and promulgated by the President of the Congress. 
10. The Congress may invest the President of the Republic for up to six months with 
extraordinary powers to issue d ecrees with the force of law for reasons of public necessity or 
convenience.12  This power must be requested expressly by the Government and its approval requires 
the vote of an absolute majority of the memb ers of both Houses.  The Congress may nonetheless 
amend such decrees at any time and on its own initia tive.  These powers may not be conferred for the 
purpose of issuing codes, statutes, basic laws or of levying taxes.13 
11. The management of Colombia's international relations and the conclu sion of international 
treaties are the responsibility of the President of th e Republic.  International treaties must be approved 
by the Congress, which has no authority to ame nd them.  Once a treaty has been approved, the 
Constitutional Court reviews its constitutionality as we ll as that of the law approving it and issues the 
judgement approving the treaty.  This judgement is forwarded to President of the Republic for 
ratification.  The Constitution allows for the provi sional approval of trea ties of an economic and 
commercial nature agreed upon in the realm of in ternational bodies, pending their approval by the 
Congress.14  International treaties have the status of law.15  Citizens may therefore rely on 
WTO Agreements and Andean Communi ty rules in Colombian courts. 
(ii) Trade policy formulation and objectives 
12. The Ministry of Commerce, Industry and Touris m (MCIT) is still the institution principally 
responsible for formulating and applying trade policy in Colombia.  To formulate foreign trade policy, 
the MCIT consults with various public sector entiti es involved with trade, as well as with private 
sector and civil society representatives (Table II.1). 
Table II.1 
Institutions responsible for form ulating and applying trade policy 
Institution  Trade-related function 
Ministry of Finance and 
Public Credit Formulates policy concerning the levy and co llection of customs duty and other taxes.  
Ministry of Agriculture Determines the requirements for impor ting and exporting agricultural products.  Lays out the sanitary 
requirements for the importation of plants and animals. 
Higher Council for Foreign Trade Advisory body comprising the President and various Mi nisters.  Advises the G overnment on general and 
sectoral foreign trade policy. 
Committee on Customs Advisory body consisting of various Vice-Mini sters.  Advises the Higher Council for Foreign Trade on:  the  
customs and tariff regime, tax refunds relating to fore ign trade operations and the adoption of provisional 
safeguard measures. 
Joint Committee on Foreign Trade Entity attached to the Mini stry of Foreign Trade, I ndustry and Tourism.  It comprises the members of the 
Higher Council, the representatives of the economic sect ors, two representatives of the labour sector and 
two representatives of academia.  Advises the Presid ent of the Republic on matters pertaining to the 
improvement of quality, productivity and the competitiveness of the country. 
Source:   WTO Secretariat. 
13. Colombia uses trade policy as an instrument  for attaining its overall economic policy 
objectives of growth, job creation and development in  general.  Colombia continues to encourage 
                                                      
12 Article 18 of Law No. 1,444 of 2011. 
13 Article 150, Political Constitution of Colombia. 
14 Article 224, Political Constitution of Colombia. 
15 Article 93, Political Constitution of Colombia. WT/TPR/S/265/Rev.2 Trade Policy Review 
Page 26 
  
  integration processes and bilateral and multilatera l trade agreements that expand and facilitate 
Colombia's external transactions with a view to promoting exports. 
14. Colombia's trade policy continues to be g eared towards Latin American and Caribbean 
integration as well as the strengthening of trade a nd investment flows between Colombia and the rest 
of the world.  The country has therefore participated  in a range of negotiations to improve the existing 
bilateral and regional agreements and to sign new agreements to secure stable preferential access to strategic markets.  Another important  goal of Colombia's trade policy is to continue its participation in 
the WTO with a view to creating a multilateral system  with clear and transparent rules that support the 
integration of developing countri es into the international economy. 
(3) I
NTERNATIONAL TRADE RELATIONS  
(i) WTO 
15. Colombia has been a member of the WTO since 30 April 1995.16  Colombia took part in the 
negotiations on telecommunications  and financial services following the Uruguay Round and signed 
the Fourth and the Fifth Protocols to th e General Agreement on Trade in Services.17  Colombia has 
been an observer in the Committee on Government Procurement since 2006.  Colombia acceded to 
the Information Technology Agreement on 28 March 2012. 
16. Colombia attaches great importance to th e multilateral trading system and the WTO, 
especially in the light of the world economic situation.   For Colombia, the antidote to the crisis is an 
open trade regime in the framework of a transparent,  predictable and inclusive multilateral system that 
is complemented by regional and bilateral end eavours.  Colombia believes in strengthening the 
system in such areas as the operation of the regular bodies, the monitoring and review of trade 
policies and practices, compliance with notification commitments and the dissemination and use of the information notified.
18 
17. Colombia has supported the early and balanced completion of the Doha Round, maintaining 
the reform of agriculture as the central plank.  To that end Colombia stands ready to explore areas of 
negotiation in which we can advance towards pr ovisional or definitive agreements.  Colombia 
considers it necessary to conclude the negotiations so  as to achieve more open, undistorted markets, to 
strengthen the multilateral system and ensure that markets that are now open continue to be so.  
The results of the Round should embody the needs of developing countries.  For Colombia, this 
means better market access conditions for both services and agricultural goods, as well as eliminating 
distortions in agriculture and st rengthening the rules-based system. 
18. In accordance with its assumed commitments, Colombia has continued to submit notifications 
to the WTO since the last review (Table II.2). 
                                                      
16 Law No. 170 of 1994. 
17 WTO documents GATS/SC/20/Suppl.2 of 11  April 1997 and GATS/SC/20/Suppl.3 of 
26 February 1998. 
18 WTO document WT/MIN(11)/S T/54 of 16 December 2011. Colombia WT/TPR/S/265/Rev.2 
 Page 27 
 
 
  Table II.2 
Principal notifications submitted pursuant to th e WTO Agreements, 1 January 2006-29 February 2012 
Agreement Requirement WTO document (date) (latest document if 
submitted regularly)  
Agreement on Trade-Related Aspects of  Intellectual Property Rights (TRIPS) 
Article 63.2 Legislation IP/N/1/COL/3 (30/01/2012) 
Article 69 Information Services  IP/N/3/Rev.10/Add.3 (14/07/2008)  
Agreement on Agriculture  
Articles 10 and 18.2 
(ES.1 and ES.2) Export subsidies for the years 2008, 2009 and 2010 G/AG/N/COL/44/Add.1 (25/11/2011) 
G/AG/N/COL/45 (25/11/2011) 
Article 18.2 (DS.1) Domestic support for 2010 G/AG/N/COL/48 (25/11/2011) 
Article 18.2 (MA.1) Administration of tariff quota co mmitments for 2009 G/AG/N/COL/35/Add.1 (13/01/2011) 
Article 18.2 (MA.2) Volume of im ports under tariff quotas for calendar 
year 2010 G/AG/N/COL/47 (25/11/2011) 
Articles 5.7 and 18.2 
(MA.5) Special safeguard provisions duri ng 2010 G/AG/N/COL/46 (25/11/2011) 
General Agreement on Trade in Services (GATS) 
Article III:3 Legislation S/C/N/576 (05/10/2010) 
Article III.4 and/or IV.2 Information Services  S/ENQ/78/Rev.9 (01/12/2006) 
Article V.7(a) Regional trade agreements (RTAs):  Colombia and Canada S/C/N/602 
WT/REG301/N/1 (10/11/2011) 
RTAs:  Colombia and Switzerla nd and Liechtenstein S/C/N/600 
WT/REG299/N/1 (15/09/2011) 
RTAs:  Colombia and Mexico WT/REG289/N/1/Add.1 (15/12/2011) 
S/C/N/563 WT/REG289/N/1 (14/09/2010) 
RTAs:  Colombia and Chile S/C/N/509 
WT/REG272/N/1 (25/08/2009) 
GATT 1994 
Article XVII.4(a) (State trading) State trading enterprises G/STR/N/13/COL (01/07/2010) 
Article XXIV:7(a) 
(Free trade areas) RTAs:  Colombia and Canada  S/C/N/602 
WT/REG301/N/1 (10/11/2011) 
RTAs:  Colombia and Switzerla nd and Liechtenstein S/C/N/600 
WT/REG299/N/1 (15/09/2011) 
RTAs:  Colombia and Mexico S/C/N/563 
WT/REG289/N/1 (14/09/2010) 
RTAs:  Colombia and Chile S/C/N/509 
WT/REG272/N/1 (25/08/2009) 
Article XXVIII:3 Modification of sche dules (retaliatory withdrawal of 
concessions) G/SECRET/20/Add.3 (03/07/2006) 
Article XXVIII:5 Modification of sche dules (reserve the right to modify 
schedules for a three-year period) G/MA/276 (09/01/2012) 
Agreement on Implementation of GATT Article VI (Anti-dumping) 
Article 16.4 (semi-annual) Anti-dumpi ng measures (taken in the preceding 
six months) G/ADP/N/216/COL/Corr.1 (30/08/2011) 
Article 16.5  Competent authorities G/ADP/N/14/Add.23 
G/SCM/N/18/Add.23 (24/04/2007)  
Article 18.5 Laws/regulations and change s thereto G/ADP/N/1/COL/3 (12/08/2010) 
Agreement on Import Licensing Procedures  
Articles 5.1-5.3 Import licensing procedures or modifi cations thereto G/LIC/N/2/COL/1/Corr.1 (13/10/2011) 
Article 7.3 Replies to questionnaire G/LIC/N/3/COL/9 (10/10/2011)  
Article 8.2(b) Laws/regulations (a nd changes thereto, including changes 
in the administration of such laws) G/LIC/N/1/COL/2 (08/10/2007) 
Agreement on the Application of Sanitary and Phytosanitary Measures 
Article 7, Annex B Sanitary/phytosanita ry regulations G/SPS/N/COL/215 (26/01/2011) 
   WT/TPR/S/265/Rev.2 Trade Policy Review 
Page 28 
  
  Agreement Requirement WTO document (date) (latest document if 
submitted regularly)  
Agreement on Technical Barriers to Trade 
Article 2.10 Technical regulations (urg ent) G/TBT/N/COL/126/Add.1 (15/03/2010) 
Article 2.9 Technical regulations G/TBT/N/COL/115/Add.2 (06/02/2012) 
Articles 2.9 and 5.6 Technical regulations;  conformity a ssessment procedures G/TBT/ N/COL/156/Add.1 (06/02/2012) 
Article 5.6 Conformity assessment proce dures G/TBT/N/COL/163/Add.2 (20/01/2012) 
Articles to be determined Technical regul ations G/TBT/Notif.00/579/Add.2 (18/12/2009) 
G/TBT/N/COL/103 (03/10/2007) 
Article 15.2 Administrative arrangements;  laws/re gulations G/TBT/2/Add.18/Re v.1/Suppl.1 (09/01/2012) 
Agreement on Subsidies a nd Countervailing Measures 
Article 27.4, Part VIII:  
developing country 
Members  Special and differential treatme nt for developing country 
Members:  the developing country Members shall phase 
out their export subsidies within the eight-year period, preferably in a progressive manner. G/SCM/N/160/COL (31/05/2011) 
Article 25.1 
GATT Article XVI.1 Subsidies G/SCM/N/186/COL 
G/SCM/N/220/COL (30/05/2011) 
Article 25.11 Countervailing measur es (taken in the preceding 
six months) G/SCM/N/228/Add.1 (19/10/2011) 
Article 25.12 Competent aut horities G/ADP/N/14/Add.23 
G/SCM/N/18/Add.23 (24/04/2007) 
Source:  WTO Secretariat. 
19. During the period of this review, Colombia has participated in 20 disputes under the 
WTO Dispute Settlement Body:  once as a complain ant, twice as a respondent and 17 times as a 
third party (Table II.3). 
20. On 21 March 2007, Colombia requested consultati ons with the European Union (formerly the 
EC) concerning its regime fo r the importation of bananas.19  When those consultations failed to 
produce a satisfactory result, Colombia submitted th e matter to Director-General, asking him to use 
his good offices to facilitate a solution of its disput e with the EU.  Consultations took place in 2008 
and 2009 under the Colombia EU good offices procedur e.  These direct consultations finally yielded 
two agreements between the EU and its MFN bana na suppliers - one with all Latin American 
MFN suppliers and the other with the United Stat es.  The parties initialled the two agreements on 
15 December 2009.20 
21. In 2007 Panama initiated a dispute settlement pr ocedure against Colombia regarding the use 
of indicative prices and restrictions on ports of entr y.  The Panel concluded that Colombia had acted 
inconsistently with the provisions of the Cu stoms Valuation Agreement and the GATT 1994 and 
recommended that Colombia should bring its measur es into conformity with the said Agreements.  
In February 2010, Colombia notified having take n the requisite steps to comply with the 
recommendations and rulings of the DSB.21 
 
                                                      
19 WTO online information, "Dispute settlement:  Dispute DS361".  Viewed at:  
http://www.wto.org/english/tratop_e /dispu_e/cases_e/ds361_e.htm. 
20 The text of the agreement betw een the European Union and its La tin American MFN suppliers - the 
"Geneva Agreement on Trade in Bananas" - was then ci rculated to the General Council for its information 
(WT/L/784) WTO document WT/DS361/2  WT/DS364/2 of 22 December 2009. 
21 WTO online information, "Dispute settlement:  Dispute DS366".  Viewed at:  
http://www.wto.org/english/tratop_e /dispu_e/cases_e/ds366_e.htm. Colombia WT/TPR/S/265/Rev.2 
 Page 29 
 
 
  Table II.3 
Situation regarding disput e settlement cases, 1 January 2006-29 February 2012  
Subject of dispute: Against/ 
raised by Status as at 29 February 2012 (date) WTO document series
Colombia as complainant 
Regime for the Importation of Bananas EU (formerly the EC)/ 
Colombia At the consultation stage 
(21 March 2007) WT/DS361 
Colombia as respondent 
Customs measures on the importation of 
certain goods from Panama Colombia/ 
Panama Settled or terminated (withdrawn, 
mutually agreed solution) (1 December 2006) WT/DS348 
Indicative prices and restrictions on ports of 
entry Colombia/ 
Panama Implementation by respondent notified 
(18 February 2010) WT/DS366 
Colombia as third party 
Certain country-of-origin labelling 
requirements USA/ 
Canada Report of the Panel circulated 
(18 November 2011) WT/DS384 
USA/ 
Mexico WT/DS386 
Measures related to the exportation of 
various raw materials China/ 
USA Report adopted with the 
recommendation to bring measures into conformity (22 February 2012) WT/DS394 
China/ 
EU WT/DS395 
China/ 
Mexico WT/DS398 
Definitive anti-dumping measures on certain 
iron or steel fasteners from China EU/ 
China Report adopted with the 
recommendation to bring measures into 
conformity (28 July 2011) WT/DS397 
Measures prohibiting the importation and 
marketing of seal products EU/ 
Canada Panel established, but not yet composed 
(21 April 2011) WT/DS400 
EU/ 
Norway WT/DS401 
Taxes on distilled spirits Philippines/ 
USA Report adopted with the 
recommendation to bring measures into 
conformity (20 January 2012) WT/DS403 
Ukraine/ 
Moldova Panel established, but not yet composed 
(20 July 2011) WT/DS423 
Anti-dumping measures on certain footwear 
from China EU/ 
China Report adopted with the 
recommendation to bring measures into 
conformity (22 February 2012)  WT/DS405 
Measures affecting the production and sale 
of clove cigarettes USA/ 
Indonesia Panel report under appeal 
(5 January 2012) WT/DS406 
Safeguard measures on imports of 
polypropylene bags and tubular fabric Dominican Republic/ 
Costa Rica Report adopted with the 
recommendation to bring measures into conformity (22 February 2012) WT/DS415 
Dominican Republic/ 
Guatemala WT/DS416 
Dominican Republic/ 
Honduras WT/DS417 
Dominican Republic/ 
El Salvador WT/DS418 
Source:  WTO Secretariat. 
(ii) Regional trade agreements 
(a) Andean Community 
22. Together with the Plurinational State of Bolivia , Ecuador and Peru, Colombia is a member of 
the Andean Community, founded with the signing of the Cartagena Agreement in 1969.  WT/TPR/S/265/Rev.2 Trade Policy Review 
Page 30 
  
  On 20 September 2006, Chile was granted th e status of Associate Member Country.22  
The MERCOSUR countries (Argentina, Brazil, Para guay, Uruguay) have also been Associate 
Members since 7 July 2005.23  Member countries are free to negotiate trade agreements with 
third countries or groups of countries.24  One of the requirements is that they notify the Andean 
Community Commission before signing the agreement.25 
23. In 2006 the Bolivarian Republic of Vene zuela denounced the Cartagena Agreement.26  During 
that same year, however, the Bolivarian Re public of Venezuela signed a Memorandum of 
Understanding with the member countries of the A ndean Community agreeing to respect fully the 
trade advantages received and granted under the An dean Liberalization Programme, which must be 
maintained amongst the parties.27  Finally, in 2011, Colombia and the Bolivarian Republic of 
Venezuela signed a partial scope agreement in the LAIA framework to maintain those preferences.28  
This agreement will take effect once its  six annexes have been agreed upon.29 
24. A free trade area has existed since 1993 between th e Plurinational State of Bolivia, Colombia 
and Ecuador, and covers the entire tariff universe (Peru became a full member of the free trade area in January 2006).
30  In 1995, the Common External Tariff was adopted by Colombia, the Plurinational 
State of Bolivia and Ecuador (Decision No. 370).31  In August 2007 it was decided through Decision 
No. 669 to create a High Level Working Group on Tariff Policy in order to formulate an Andean Community tariff policy that would apply to all member countries by 31 January 2008 at the latest.
32  Decision No. 669 temporarily restored tariff policy control to member countries, thus freeing 
them from the obligations imposed by Decision No . 370, which lays out the Andean common tariff 
policy.  Decision 671 of 13 July 2007 provided for the harmonization of the customs regimes of 
Andean Community member countries.  In December 2011, however, the obligation to apply the Community's common external tariff regulations and the supplementary provisions, including the 
Andean price band system, was suspended until 31 December 2014 (Decision No. 771 of 7 December 2011).
33 
                                                      
22 Decision No. 645, and CAN online information, " Relaciones Externas:  Chile " .   V i e w e d  a t :   
http://www.comunidadandina. org/exterior/Chile.htm. 
23 Decision No. 613.  Viewed at:  http://w ww.comunidadandina.org/normativa/dec/D613.htm. 
24 Decision No. 598 of 2004. 
25 CAN online information, " Política Arancelaria ".  Viewed at:  
http://www.comunidadandina.org/comercio/union.htm. 
26 Andean Community, Press Release " Secretaría General de la CAN recibió comunicación oficial del 
retiro de Venezuela ", 22 April 2006.  Viewed at:  http://www.comunidadandina.org/prensa/notas/np22-4 
06a.htm. 
27 Article 135 of the Cartagen a Agreement (Decision No. 641). 
28 Online information, People's Ministry of Communication and Information, " Noticias:  
NoticiasMinCI:  Establecido nuevo acuerdo comercial entre Venezuela y Colombia ".  Viewed at:  
http://www.minci.gob.ve/noticias/1/208784/establecido_nuevo_acuerdo.html 
29 The six annexes are:  preferential tariff treatment , sanitary and phytosanita ry standards, technical 
standards, rules of origin, trade protection and dispute settlement mechanism.  To date (14 February 2012), 
two of the annexes have been agreed on, and are now at the legal review stage. 
30 Andean Community Decision No. 414 of 30 July 1997. 
31 CAN online information, " Política Arancelaria ".  Viewed at:  http://www.comunidadandina.org/ 
comercio/union.htm. 
32 CAN online information, " Comercio de bienes ".  Viewed at:  http://www.comunidadandina.org/ 
comercio/comercio_bienes.htm. 
33 This notwithstanding, the General Secretariat of  the Andean Community (SGCAN) continues to set 
the reference prices of the products  in that system every 15 days. Colombia WT/TPR/S/265/Rev.2 
 Page 31 
 
 
  25. As regards services, it was decided in Decemb er 2006 to liberalize services in the Andean 
area and to identify those sectors in which sector al norms would be harmonized.  Those sectors 
included financial and professional services as well as  radio and television and transport services, for 
which regulations were agreed in order to enc ourage the participation of subregional investors.34  
It was decided in 2011 that financial as well as free to air television services would not be liberalized 
until 2014.35 
26. In 2007 the Andean Community Presidents agreed to promote more balanced integration that 
would take account of the social, cultural, econo mic, political, environmental and trade dimensions.36  
In 2010, the Andean Council of Foreign Ministers approved the new guiding principles for the 
Andean integration process and the Strategic Agenda , which sets out the areas in which the Andean 
Community member countries are resolved to move forward together.37  In that same year the 
Council, through Decision 741, adopted the notion of Andean Community Observer Country, thereby allowing non-member countries to support the Andean Community's integration endeavours through the policy and cooperation mechanisms they deem a ppropriate.  In 2011, Spain formally requested 
observer status with the Andean Community, thus becoming entitled to participate with a voice in the 
meetings of Andean Community bodies and to promote joint programmes and activities.
38 
(b) Partial-scope agreements nego tiated in the framework of the Latin American Integration 
Association (LAIA) 
27. In the LAIA framework, Colomb ia has signed agreements with Costa Rica, Chile, Cuba, 
Mexico, Nicaragua and Panama39 and the Bolivarian Republic of Venezuela40, as well as with the 
member countries of the Caribbean Community (CARICOM)41, the Northern Triangle of Central 
America (El Salvador, Guatemala and Honduras) and MERCOSUR.42  Since 2006, Colombia has 
been renegotiating and strengthening the agr eements with Cuba, Chile, Mexico, and the 
Northern Triangle of Central America. 
                                                      
34 Decision No. 659 of 14 December 2006;  CAN online information, " Cronología temática ".  Viewed 
at:  http://www.comunidadandina.org/quienes/tematica.htm. 
35 Decision No. 772 of  7 December 2011. 
36 CAN online information, " Reseña histórica ".  Viewed at:  http://www.comunidadandina.org/ 
quienes/resena.htm. 
37 CAN online information, " Reseña histórica ".  Viewed at:  http://www.comunidadandina.org/ 
quienes/resena.htm. 
38 CAN online information, " Cronología por fechas ".  Viewed at: http://www.comunidadandina.org/ 
quienes/crono.htm. 
39 Partial-Scope Agreement under Article 25 of th e Treaty of Montevideo of 1980, between the 
Republic of Colombia and the Republic of Panama, AA P.A25TM No. 29 of 9 July 1993, incorporated into 
Colombian Law by Decree No. 2781 of 1994;  First Protocol Amending AAP.A25TM No. 29 of 28 April 2003, incorporated into Colombian Law by Decree No. 1845 of 2003;  and Second Protocol Amending AAP.A25TM 
No. 29 of 15 February 2005, incorporated into Colombian Law by Decree No. 1138 of 2005. 
40 The Partial-Scope Agreement signed in the LAIA framework on 28 November 2011 has not entered 
into force. 
41 Partial Scope-Agreement on Trade and Economic and Technical Cooperation between the Republic 
of Colombia and the Caribbean Community (CARICOM) AAP.A25TM No. 31 of 24 July 1994, incorporated into Colombian law by Decree No. 2.891 of 1994 and Decree No. 973 of 1998. 
42 Economic Complementarity Agreement AAP.CE No. 59 of 18 October 2004, incorporated into 
Colombian law by Decree No. 141 of 2005.  The Agreement incorporates the tariff preferences laid down in the partial scope agreements concluded previously ("historical heritage") between Colombia and MERCOSUR 
members (online information, Ministry of Commerce, Industry and Tourism, "CAN MERCOSUR".  Viewed at:  
http://www.tlc .gov.co/publicacione s.php?id=13228). WT/TPR/S/265/Rev.2 Trade Policy Review 
Page 32 
  
  28. Economic Complementarity Agreement No. 49 be tween Colombia and Cuba was signed in 
2000 in the LAIA framework and took effect on 10 Ju ly 2001.  The agreement was deepened in 2008 
with the signing of two protocols:  the first addressed the existing preferences and the second incorporated topics that go beyond market access (Table AII.1).
43 
29. Colombia and Chile signed Economic Comp lementarity Agreement (ECA) No. 24 on 
6 December 1993, establishing a reciprocal ta riff reduction programme covering all trade.44  
On 27 November 2006 the two countries signed a free trade agreement that took effect on 
8 May 2009.  That agreement consis ts of an Additional Protocol to ECA No. 24 that further buttresses 
it by liberalizing the entire tariff universe of both parties as well as trade in services excluding 
financial and air services.45  In 2012, products not yet covered by the tariff reduction programme will 
be liberalized, including rice, sugar and meat , dairy and oilseed products (Table AII.1).46 
30. Although the Bolivarian Republic of Ven ezuela denounced the Free Trade Agreement 
between Colombia, Mexico and the Bolivarian Repub lic of Venezuela (FTA G-3) in May 2006, that 
instrument still governs trade between Colombia and Mexico.  In August 2009, Colombia and Mexico 
concluded negotiations on an Ame nding Protocol to the Treaty, which took effect in August 2011.47  
One of the main achievements of the negotiation was the inclusion of some agricultural and industrial 
products that had been excluded from the orig inal tariff reduction programme, as well as the 
incorporation of provisions on rules of origin. 
31. In 2006, Colombia and the countries of th e Northern Triangle of Central America 
(El Salvador, Guatemala, Honduras) bega n negotiations on a trade agreement48, which was signed on 
9 August 2007 and ratified by th e Colombian Congress in June 2008.49  That agreement covers market 
access, investment, services, e-commerce, cooperati on, dispute settlement, government procurement, 
trade facilitation, sanitary and phytosanitary measures , technical standards, rules of origin and trade 
protection measures (Table AII.1). 
(iii) Other agreements and preferences in force 
32. The Trade Promotion Agreement between Colombia and Canada was signed in 
November 2008 and became effective in August 2011.  It consists of three separate but interrelated 
agreements:  the Free Trade Agreement, which contai ns provisions on trade in goods, trade in services 
and investment;  the Labour Cooperation Agreem ent, which formulates obligations regarding the 
protection of labour rights and compliance with in ternal standards;  and the Agreement on the 
                                                      
43 Online information, Ministry of Commerce, Industry and Tourism, " Acuerdo Colombia Cuba ".  
Viewed at:  http s://www.mincomercio.gov.co/ publicaciones.php?id=1888. 
44 Economic Complementarity Agreement between Colombia and Chile for the establishment of an 
extended economic area, AAP.CE No. 24 of 6 December 1993, inco rporated into Colombian law by 
Decree No. 2717 of 1993, as amended by Decree No. 1.741 of 1994 and extended by Decrees No. 2,172 of 
1995, No. 2.181 of 1996, No. 2.178 of 1997 and No. 617 of 2002. 
45 WTO document WT/REG272/1/ Rev.1 of 21 December 2010. 
46 Online information, Ministry of Commerce, Industry and Tourism, " Resumen del Acuerdo ".  Viewed 
at:  http://www.tlc.gov.co/p ublicaciones.php?id=1425. 
47 This Amending Protocol was approved by Decrees No. 2,676 and No. 2,677 of 2011. 
48 Colombia's trading relations with Guatemala, El Salvador and Honduras have been governed by 
partial-scope agreements signed in 1984 in the LAIA framework (Partial-scope agreement between the Republic 
of Colombia and the Republic of Costa Rica, AAP.A25TM No. 7 of 2 March 1984). 
49 Besides, the President approved that agreement on 30 July 2008 through Law No. 1.241 and it was 
declared constitutional by the Constitutional Court on 8 July in Judgement No. C 446 of 2009, which was 
notified on 23 September 2009. Colombia WT/TPR/S/265/Rev.2 
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  Environment, which lays out the obligations of both parties regarding environmental protection 
(Table AII.1).50 
33. The free trade agreement between Colomb ia and the EFTA countries (Switzerland, 
Liechtenstein, Norway and Iceland) was si gned on 25 November 2008 and approved in 2010.51  
In 2011 that agreement took effect between Co lombia and Switzerland and Liechtenstein, which 
ratified it in 2009.  Norway and Iceland have not yet ratified it, however.  Not only does the 
agreement contemplate the liberalization of trade in  agricultural and industrial goods, rules of origin, 
customs procedures and trade facilitation, it also includes commitments regarding trade in services, 
the transit of persons, e-commerce, technical st andardization, investment measures, competition 
policy and intellectual property (Table AII.1).52 
34. Under the Generalized System of Preferenc es (GSP) Colombia is still a beneficiary of 
schemes established by Canada, Japan, Norway, New Zealand, Russia, Turkey and Switzerland.53 
35. The EU accords tariff preferen ces to Colombia under the "GSP plus" regime, and these will 
be valid until 31 December 2013.  The regime gr ants tariff preferences of 100 per cent for 
6,600 products, 4,037 sensitive produc ts and 2,563 non-sensitive ones, except for shrimp, which will 
be subject to a preferential tariff.54 
36. Since 1992 Colombia has enjoyed tariff prefer ences accorded by the United States under the 
Andean Trade Preferences Act (ATPA).  In Augus t 2002, these preferences were renewed through the 
Andean Trade Promotion and Drug Eradication Ac t (ATPDEA), which renewed the ATPA regime 
until 2006 and extended th e benefits thereunder.55  As of 2006, the preferences granted under the 
ATPDEA were renewed on a year-by-year basis until February 2011, when they were suspended.56  
Nevertheless, the preferences were reintroduced on 5 November 2011 with retrospective effect, and 
will be valid until July 2013.57 
                                                      
50 Online information, Ministry of Commerce, Industry and Tourism, " Resumen del tratado de libre 
comercio entre Colombia y Canadá ".  Viewed at:  https://www.min comercio.gov.co /tlc/publicaciones. 
php?id=721. 
51 Law No. 1.372 of 7 January 2010. 
52 Online information, Ministry of Commerce, Industry and Tourism, " Resumen del tratado de libre 
comercio entre Colombia y los Estados AELC (EFTA) ".  Viewed at:  https://www.mincomercio.gov.co 
/tlc/publicaciones.php?id=702. 
53 UNCTAD online information, "GSP Handbooks:  Canada, Japan, Switzerland and Turkey".  Viewed 
at:  http://archive.unctad.org/Templates/Page.asp?intItemID=1421&lang=1;  document UNCTAD/TAP/258/ Rev. 3 of April 1998 (New Zealand);  and Ministry of Commerce, Industry and Tourism (2003). 
54 Online information, Ministry of Commerce, Industry and Tourism, " Sistema Generalizado de 
Preferencias ".  Viewed at:  https://www.mincome rcio.gov.co/publicaciones.php?id=10158. 
55 A limited number of products, including certain tex tiles, articles of apparel, rum and canned tuna do 
not enjoy preferences.  The United States is also maintaining its tariff quotas for imports of certain agricultural 
products. 
56 ATPDEA preferences were suspended from February to October 2011. 
57 Online information, Ministry of Commerce, Indust ry and Tourism, "APTA ATPDEA".  Viewed at:  
https://www.mincomerc io.gov.co/publicaci ones.php?id=10542. WT/TPR/S/265/Rev.2 Trade Policy Review 
Page 34 
  
  (iv) Trade agreements signed and under negotiation 
37. The Trade Promotion Agreement between Colo mbia and the United States was signed in 
November 2006.58  Both the Agreement and its "Amendi ng Protocol" were incorporated into 
Colombian Law in 2007.59  The United States Congress approved the Agreement in October 2011, 
and the President ratified it that same month.  Colo mbia is now at the stage of implementing the new 
regulations pertaining to the Agreement, which en tails making the necessary legal adjustments so as 
to guarantee that it is consistent with the Colombia n legal order.  Once this stage is complete, there 
will be an exchange of notes between the two Go vernments, and the agreement will take effect 
60 days thereafter.60 
38. Colombia and Peru completed negotiations  on a trade agreement with the EU on 
19 May 2010.  In March 2011, the legal review proc ess was completed, giving way to the translation 
stage (the agreement must be tran slated into the 21 official EU languages), after which it will be 
signed, approved and ratified.  This Agreement incl udes commitments in all the areas of the trade in 
goods and services.61 
39. Colombia is currently negotia ting free trade agreements with the Republic of Korea 
(since December 2009), Panama (since March 201 0), and Turkey (since June 2011).  In 2012, 
Colombia will begin negotiations with Israel.  Sim ilarly, Colombia has started exploratory talks with 
Japan on the possibility of negotiating an economic partnership agreement. 
(4) INVESTMENT REGIME  
40. The foreign investment regime, which includes fo reign direct investment (FDI) and portfolio 
investments by natural and legal pe rsons not resident in Colombia, is regulated by Decree No. 2080 of 
2000.  Colombia grants national treatment to foreign investment.62  Upon request, investments 
originating in an Andean Community member country are considered as national investments.63 
41. Within the framework of the Andean Commun ity's common investment regime, Colombia 
freely determines its investment policy.64  That policy is formulated by the Ministry of Commerce, 
Industry and Tourism in coordination with the Minist ry of Finance and Public Credit, and bearing in 
mind the recommendations of the National Ec onomic and Social Policy Council (CONPES).65  Until 
2007, CONPES had been empowered to identify those se ctors that were not open to foreign capital;  
                                                      
58 The agreement covers market access, rules of orig in, customs procedures, sanitary and phytosanitary 
measures, technical barriers to trade, trade protection, government procurement, investment, cross-border 
services, financial services, telecommunications, e-comm erce, intellectual property, competition policy, labour 
aspects, environment, transparency and dispute settlement. 
59 Law No. 1,143 of 2007, Constitutional Court Judgements No. C 750/08 and No. C 751/08. 
60 Online information, Ministry of Commerce, Industry and Tourism, " TLC Colombia Estados Unidos ".  
Viewed at:  http://w ww.tlc.gov.co/publi caciones.php?id=14853. 
61 MCIT online information, " Resultados de la Negociación con la Unión Europea ".  Viewed at:  
https://www.mincomerc io.gov.co/publicaci ones.php?id=17495. 
62 Decree No. 2.080 of 2000, Article 2. 
63 Decree No. 2.080 of 2000, Article 13. 
64 CAN, Decision No. 291 of 1991. 
65 Law No. 210 of 2003, Article 2. Colombia WT/TPR/S/265/Rev.2 
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  that power was never exercised, however, and was therefore eliminated.66  Proexport is the entity 
responsible for promoting investments and advising investors.67 
42. Foreign investment is permitted in most s ectors, except for some in which Colombia 
maintains limitations or prohibitions (Table II.4).  Similarly, domestic and foreign investment in the 
provision of certain household public services68 are subject to restrictions.  Besides, the State may 
determine areas in which only one company may pr ovide services exclusively for a specified period 
of time.69  The acquisition of land in border areas, coastal areas and island territory is restricted for 
foreigners.70  Andean multinational enterprises are entitled to participate in th e sectors reserved for 
domestic enterprises.71 
43. All foreign investments must be registered.  The investor effects the registration directly with 
the Bank of the Republic.72  There are several registration proce dures depending on the type (direct or 
portfolio) and the form (foreign exchange or other) of the investment.73  Registration is necessary to 
enable investors to repatriate and/or reinvest the profits on their investment.74  Foreign investments do 
not require prior authorization, except for direct investments in the financial and hydrocarbons and 
mining sectors, as well as portfolio investments, which fall under a special investment regime.75  
Foreign investments in the financial and hydrocar bons and mining sectors requi re prior authorization 
from the competent ministry/supervisory authority.  Portfolio investments may be made only through stockbrokers, trust companies or investment management companies.
76 
Table II.4 
Prohibitions and restriction s on foreign investment 
Sector  Legal framework Prohibition Limitation 
Activities pertaining to national 
defence and security Decree No. 2.080 
of 2000, Article 6 Yes  
Processing, disposal and elimination 
of toxic, hazardous or radioactive 
waste not produced in Colombia. Yes  
Surveillance and Personal Security 
Companies  Decree No. 3,564 
of 1994 Yes Only companies organized under Colombian law as private 
limited companies or private security and surveillance 
cooperatives may provide private security and surveillance 
services in Colombia.  The pa rtners or members of these 
companies must be Colombian nationals.  Companies established before 11 February  1994 with foreign partners 
or capital may not increase the participation of the foreign 
partners.  Cooperatives estab lished before that date may 
retain their legal status. 
                                                      
66 Decree No. 2,466 of 2007. 
67 Proexport online information.  Viewed at:  http://www.inviertaencolombia.com.co. 
68 Water supply and sewage services, sanitation, gas distribution and electricity. 
69 Law No. 142 of 1994, Article 40. 
70 Article 100 of the Political Constitution and Decree Law No. 1.415 of 1940. 
71 CAN, Decision No. 292 of 1991.  Andean companie s are defined as companies in which:  at least 
60 per cent of the capital is owned by investors from two or more member countries;  or at least 30 per cent of the capital is owned by investors from two member countries only. 
72 Decree No. 2.080 of 2000, Article 8. 
73 The procedures are detailed in External Regulatory Circular No. DCIN 83 dated 28 January 2011 
issued by the Bank of the Republic.  Viewed at:  http://www.banrep.gov.co/documentos/reglamentacion/ 
cambiaria/2011/4.pdf. 
74 Proexport online information, " Registrar la Inversión ".  Viewed at:  http://www.inviertaencolombia. 
com.co/como invertir/pasos para instalarse/registrar la inversion.html. 
75 Decree No. 2.080 of 2000, Article 7. 
76 Decree No. 2.080 of 2000, Title III. WT/TPR/S/265/Rev.2 Trade Policy Review 
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  Sector  Legal framework Prohibition Limitation 
Companies providing free-to-air 
television services Law No. 680 of 
2001, Article 1  40% of the capital.  The investor's country of origin must 
offer reciprocity with respect to Colombian investments.  
The investment must be made by companies dedicated to the television industry in the country of origin. 
Geological consulting services  Law No. 9 of 1974 
Article 10  Associate with a Colombian firm. 
Source:  WTO Secretariat. 
44. Colombian or foreign direct investors may sign a legal stability contract with the State, 
guaranteeing that the legal provisions under which th e investment has been made will continue to 
apply for the duration of that investment, regardless of any amendment of those provisions.  
Foreigners wishing to make portfolio investments in  Colombia are not entitled to sign this type of 
contract, however.77  Legal stability contracts nevertheless do not cover changes to the regulations 
governing certain areas such as the harmonization of in ternational treaties with national regulations;  
the social security system;  investments made by the Government during a state of emergency, indirect taxes, rules which, during the execution of  the legal stability contract, are declared to be 
illegal or unconstitutional, regulations issued by the Bank of the Republic, prudential regulations for 
the financial sector, the tariff regime for public ser vices, and the obligation to declare and pay taxes.
78 
45. To sign a legal stability contract, the investor must submit an application to the 
MCIT Technical Secretariat.79  This application is assessed by  the Legal Stability Committee, which 
is chaired by the Minister of Commerce, Industry and Tourism.80  Legal stability contracts are granted 
only if a minimum amount is invested, whether in new or existing projects.  The minimum amount of 
investment is expressed in terms of the Salario Minimo Mensual Legal Vigente  (SMMLV) (minimum 
legal monthly wage) and must be  equivalent to 7,500 SMMLVs.81  In addition, upon signing the legal 
stability contract, the investor must pay the State a stability "premium" (rate) the amount of which, as 
of 2011, has been set "on the basis of tax regulations that the government decides should be subject to stabilization".
82  Previously, the amount was equivalent to 1 per cent of the value of the annual 
investment, and in periods of low profitability, to 0.5 per cent only.  The legal stability contracts are 
signed for periods ranging from 3 to 20 years and mu st be registered with the National Planning 
Department.83 
46. To date, Colombia has negotiated 15 internati onal investment agreements.  They include 
reciprocal investment promotion and protection ag reements (APPRIs) as well as free trade agreements 
(FTAs) that contain stipulations regarding investment.84  Colombia has eight agreements in force, 
seven of which became effective during this review period:  they are with Spain (APPRI), Canada (FTA), Chile (FTA), Peru (APPRI) and Swit zerland (APPRI), and at the regional level, with 
the European Free Trade Association (EFTA)(FTA), and the Northern Triangle of Central America 
(FTA).  Colombia has signed an APPRI with Switzerland, which has been in effect since 
October 2009, but has also concluded a free trade ag reement containing investment related provisions 
                                                      
77 Law No. 963 of 2005. 
78 PricewaterhouseCoopers and Proexport (2010). 
79 For more information on the procedures, see Decree No. 2,950 of 2005. 
80 Legal Stability Committee, Resolution No. 1 of 2005, Article 1. 
81 Law No. 1.111 of 2006, Article 51. 
82 Law No. 1.450 of 2011, Article 48. 
83 Law No. 963 of 2005, Article 10. 
84 National Economic and Social Policy Council (2010a). Colombia WT/TPR/S/265/Rev.2 
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  with EFTA member countries, in force sinc e July 2011 for Switzerland and Liechtenstein.85  
The agreements signed since 2006 but still in the process of approval are the APPRIs signed by 
Colombia with China, India, the United Kingdom and Japan.86 
47. Colombia is a member of the Multilateral Investment Guarantee Agency and of the 
International Centre for the Settlement of Investment Disputes.87 
 
                                                      
85 Laws No. 1,198 of 2008 and No. 1,372 of 2010;  and online information, Ministry of Commerce, 
Industry and Tourism, " Tratado de Libre Comercio ".  Viewed at:  http://www.tlc.gov.co/;  and " Acuerdos 
Internacionales de Inversión ".  Viewed at:  https://www.mincomercio.gov.co/mincomercioexterior/ 
publicaciones.php?id=1847. 
86 National Economic and Social Policy Council (2010a);  and information provided by the authorities. 
87 Online information, Ministry of Commerce, Industry and Tourism, " Acuerdos Internacionales de 
Inversión ".  Viewed at:  https://www.mincomercio.gov.co/mincomercioexterior/publicaciones.php?id=1847.