Colombia: Bilateral Investment Treaty

Lord Browne of Ladyton Excerpts

Monday 20th January 2025 Lords Chamber

Asked by

[Lord Browne of Ladyton]

To ask His Majesty’s Government what assessment they have made of recent comments by the trade minister of Colombia regarding the investor-state dispute settlement provisions in the UK/Colombia bilateral investment treaty.

[The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office (Baroness Chapman of Darlington) (Lab)]

My Lords, the Government value the UK/Colombia bilateral investment treaty in the investment relationship between our countries. The treaty covered £6.8 billion of bilateral investment in 2023. It provides greater certainty for investors through legally binding investment protection provisions, which ensure that both UK and Colombian investors are protected against unfair and discriminatory treatment and expropriation without adequate compensation.

[Lord Browne of Ladyton (Lab)]

My Lords, my noble friend will be aware that Colombia seeks renegotiation of the terms of its investment treaty with the UK, concerned—and it is not alone in this concern—that the ISDS provisions are undermining its sovereign democratic right to legislate to protect its indigenous community and environmental rights, or to implement aspects of its national peace plan. In 10 years, it has faced 23 ISDS claims by multinational companies. One was by Glencore mining, prompted by a refusal to authorise the expansion the largest open-pit coal mine—or, if it is not the largest, it is one of the largest—in the world. Last year, we withdrew from the energy charter because of concerns that its ISDS provisions would impede our policy to phase out fossil fuels. It would be somewhat inconsistent to do that while compelling Colombia to abide by similar ISDS provisions in our treaty with it.

[Baroness Chapman of Darlington (Lab)]

My Lords, as of today His Majesty’s Government have not been formally approached by the Government of Colombia about this, but we are of course always open to hearing the views of our trading partners. Established forums exist for civil society organisations to raise and discuss trade-related issues with government Ministers. Most recently, my right honourable friend the Minister for Trade Policy and Economic Security hosted a civil society round table in December, which included a discussion on ISDS. Ministers will continue to engage with a range of stakeholders, including from civil society, across the full range of trade policy issues, including investment.