1. OECD INVESTMENT POLICY REVIEW
COLOMBIA
25 April 2012, Barranquilla

2. Highlights of the IPR
• The role of FDI in Colombia’s economic development
• Colombia’s adherence to the OECD Declaration on International
Investment
• Colombia and the OECD National Treatment Instrument
• Colombia and the OECD Guidelines for MNEs
• Colombia’s Policy Framework for Investment (PFI)
• Investment Framework for Green Growth

3. FDI in Colombia
• 4-year National Development Plan has FDI target - USD 13 billion in 2014
• Main sectors: Oil (24%), Mining & quarrying (21%), Manufacturing (20%),
financial services (13%);
• Main sources: USA (23% of stock); Panama (12%), Spain (11%);
• Privatisation contributed to a significant increase in private investment;
• Government aims to increase impact on jobs and infrastructure.

4. Colombia’s adherence to the OECD Declaration on International Investment
• Colombia is the 43rd adherent to the OECD Declaration on International
Investment and Multinational Enterprises;
• Supports an open investment environment & encourages responsible
investment by MNEs;
• Commitment to treat foreign and domestic investors equally and to
promote responsible business conduct;
• Colombia benefits from similar assurance from adherents to treat its
investors abroad fairly – relevant given the increase in OFDI;
• Adherents encourage their MNEs to operate responsibly in Colombia;
• Establishment by Colombia of a National Contact Point responsible for
promoting observance of the OECD Guidelines for Multinational
Enterprises;
• Strong stakeholder support for reform process.

5. Findings from the IPR: The National Treatment Instrument (NTI)
• Non-discrimination & equal treatment of investors embodied in
Colombia’s Political Constitution (1991), national treatment and MFN in
recent FTAs;
• Limited number of restrictions, and no trans-sectoral exceptions to NT,
some sectoral limitations (television broadcasting and fisheries);
• Notable openness in transport, telecoms & financial services, foreign
investors have equal access to government procurement, no exceptions
to NT for official aids, subsidies or tax matters;
• Some measures – for security reasons (eg landownership in border areas,
private security services) and generally in some sectors (some media,
public monopolies in production, import & export of liquors, gambling) -
to be notified for transparency.

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7. Responsible Business Conduct policies – MNE Guidelines
• No explicit RBC policy but numerous initiatives: corporate tools &
guidance, more companies taking CR measures in labour & environment;
Government has adopted a National Policy on Integrated Human Rights &
Humanitarian Law (2011), ratified 60 ILO Conventions;
• Measures to tackle informality & unemployment (Law on Formalising
Labour and Employment Generation, 2010), to encourage collective
bargaining, to strengthen workers’ protection (Public Safety Act ,2011);
• Party to all major environmental agreements (incl. UNFCCC, Kyoto),
environmental licensing ;
• Anti-corruption steps include the Anti-Corruption Statute (2011) – in
November 2011 the OECD Council invited Colombia to participate in the
OECD Working Group on Bribery and its accession to the OECD
Convention on Combating Bribery;
• Colombia will establish a National Contact Point (in MTIT) to oversee the
application of the MNE Guidelines – part of commitment to Declaration.

8. Colombia’s Policy Framework for Investment (PFI)
Party to ICSID, no case
of investor-state dispute
Domestic legislation at
times stricter than WTO
requirements
Improved regulatory FW,
quality of feasibility
studies, pricing certainty,
bidding conditions Concluded 8 bilateral
IIAs since 2005
• Investment Policy
• Investment Promotion & Facilitation
• Trade Policy
• Infrastructure
No complaints from
investors and all
investment incentives are
Colombia is a top-ten
granted to domestic &
foreign investors alike
business reformer
globally

9. Investment Framework for Green Growth
• Commitment to ensure economic growth and environmental protection
are mutually supportive;
• Measures include:
– strengthening the capacity of environmental authorities - creation of the
Ministry of Environment and Sustainable Development & co-ordinating
mechanisms);
– “green” investment incentives;
– promoting sustainable use of Colombia’s biodiversity;
• Good use of CDM (total of 154 approved projects);
• Low Carbon Development Strategy – promote growth in sectors with
lower greenhouse emissions;
• LCDS seeks to tap new financing options, transfer of clean technologies
and incentives for voluntary corporate environmental performance
improvements.

10. Thank you
Mike PFISTER, OECD Investment Division
Mike.Pfister@oecd.org
Tel: +33.1.45.24.84.48
www.oecd.org/daf/investment