In the past decade, Colombia has faced at least four legal claims by British investors for compensation over government policies that could potentially impact corporate profits. The figure was revealed by Baroness Jenny Chapman, British Minister for Latin America, during a parliamentary debate in response to a question from Baroness Frances O’Grady, former TUC general secretary, who worked with JFC to address the issue.
These cases were brought against Colombia under the Investor-State Dispute Settlement (ISDS) mechanism that is contained in the Colombia-UK Bilateral Investment Treaty (BIT). ISDS mechanisms allow corporations to sue states in private tribunals for allegedly damaging their investments: this pressures governments to prioritise the financial interests of foreign corporations over the needs of their own population. Over the past decade, Colombia has faced at least 24 ISDS claims internationally, including the four British cases referenced by Chapman, with a combined total of $13 billion.
JFC is backing the campaign to remove the ISDS mechanism from the BIT and any other agreements with Colombia. Its existence unfairly impedes governments, particularly in lower- and middle-income countries, from providing essential services and investment to marginalised communities, strengthening employment rights and enacting environmental protections that are urgently needed to combat climate change. It is time to end this harmful and unjustifiable practice.