Colombia’s withdrawal from the investment arbitration system: key legal and practical implications for investors

President Gustavo Petro has announced Colombia’s intention to withdraw from the international investment arbitration system, considering it a constraint on public policies such as the energy transition and the fight against climate change. However, this decision has not yet been formally communicated to ICSID and would not have immediate effect. If implemented, it would not affect ongoing investment arbitrations, and its impact would depend on the applicable instrument: in the case of ICSID, withdrawal would become effective six months after notice, while under investment treaties it would vary according to their specific provisions, with certain investors remaining protected for additional periods (for example, ten years for Spanish investors and six months for U.S. investors).

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