The Office of the U.S. Trade Representative said Thursday it has reached an agreement with Colombia aimed at strengthening the two countries' defenses against investor-state claims in an underlying trade pact,
U.S. Trade Representative Katherine Tai met with Minister Luis Carlos Reyes of Colombia’s Ministry of Trade, Industry, and Tourism to announce a mutual agreement on a Free Trade Commission (FTC) decision under the United States-Colombia Trade Promotion Agreement (TPA). The decision provides an official interpretation of the TPA’s investment chapter provisions.
The FTC decision aligns with the longstanding U.S. understanding of its commitments under the TPA. These positions are reflected in other trade agreements, such as the United States-Mexico-Canada Agreement (USMCA) and the amended United States-Korea Free Trade Agreement (KORUS), and have been consistently expressed in U.S. submissions to investor-State dispute settlement (ISDS) arbitrations.
The decision does not amend the TPA or create new obligations; it formalizes the U.S. interpretation of investment protection standards under the agreement.
“Like President Biden, I oppose the ability of private corporations to attack labor, health, and environmental policies through ISDS,” said Ambassador Tai. “This decision with Colombia demonstrates our willingness to use tools under existing agreements to ensure arbitrators adhere to the U.S. understanding of its commitments and address concerns about ISDS.”
The FTC decision clarifies provisions of the TPA’s investment chapter, including national treatment (Article 10.3), most-favored-nation treatment (Article 10.4), minimum standard of treatment (Article 10.5 and Annex 10-A), expropriation and compensation (Article 10.7 and Annex 10-B), investment and environment (Article 10.11), submission of claims to arbitration (Article 10.16), governing law (Article 10.22), and definitions (Article 10.28). These interpretations are consistent with those found in the USMCA, KORUS, and U.S. ISDS arbitration filings.
Under TPA Article 10.22.3, FTC decisions interpreting provisions of the TPA are binding on ISDS tribunals. Any tribunal decisions or awards must conform to the FTC’s interpretation.
The complete FTC decision is available here.
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