Switzerland Signs Investment Agreements With Colombia

by Ulrika Lomas, Tax-News.com, Brussels

19 May 2006

Swiss Minister of Economic Affairs Joseph Deiss and Colombian Minister of Trade, Industry and Tourism Jorge Humberto Botero signed two investment and economic agreements in Berne on Wednesday.

The first agreement, on the promotion and reciprocal protection of investments between Switzerland and Colombia, covers the handling of foreign investments by the host country, the transfer of capital and investment income, compensation for expropriation and procedures for settling disputes.

The agreement sets out Switzerland and Colombia's intent to guarantee their investors added legal security and to seek to create a favourable climate for the investment of foreign capital.

Colombia is one of the main recipients for Swiss direct investments in Latin America, and it is hoped that the agreement will help strengthen economic relations between the two countries.

In addition, Deiss, Botero and representatives of the other member States of the European Free Trade Association (EFTA) signed an EFTA-Colombia Declaration on Cooperation, under which the EFTA States and Colombia will seek to strengthen their efforts for improving conditions for economic cooperation.

In the framework of the EFTA-Colombia Joint Committee set up under the Declaration, the parties will jointly examine the possibilities for promoting trade and investment, using available foreign economic policy instruments.

The Swiss and Colombian ministers also discussed a number of other areas of economic cooperation, including potential for a bilateral double taxation avoidance agreement.

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