Colombia: Bilateral Investment Treaty

Lord Fox Excerpts

Monday 20th January 2025 Lords Chamber

[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.

[Lord Fox (LD)]

My Lords, as we have heard, ISDSs are not rare—there are many of them. However, increasingly they are coming under scrutiny and, moving forward, some countries are not seeking them because, as in high-profile cases such as the ones we have heard about, and in others, democratically elected Governments are being challenged and are having to overturn legitimate public policy. Can the Minister tell your Lordships’ House whether she recognises the improper regulatory chill that these agreements can create for democratically elected Governments? Can she set out, in a general sense, the Government’s position for the future? Will the Government continue to seek ISDS agreements in trade deals that they are currently negotiating?

[Baroness Chapman of Darlington (Lab)]

I am grateful to the noble Lord. I appreciate, as he invited me to, that these agreements stand over a very long period of time. Between an agreement being put in place and 10 years later—which is where we are now with Colombia—at which point there is an opportunity to look at it again, many things may change and it is open to either side to seek changes to the agreement, or to walk away entirely. At the moment, the Colombians have not indicated to us that that is their intention. It should be remembered that these bilateral treaties are helpful in providing assurance to investors, and that is something that we would not want to harm in any way.