
Campaigners have called on UK trade minister Douglas Alexander to work with Colombia to terminate the UK-Colombia bilateral investment treaty (BIT) in order to protect human rights and the environment.
The treaty – which has been in place for 10 years – comes to the end of its initial term today (Oct 10), after which it rolls over but can be terminated at any time by either the UK or Colombia. A mutual termination by the two countries would negotiate an end to the treaty’s ‘sunset clause’ which keeps its provisions applicable for 15 years after.
Campaigners from Global Justice Now, the Trade Justice Movement, War on Want, London Mining Network and ABColombia argue that the treaty gives corporations “excessive power” to demand payouts from governments as it contains the controversial Investor-State Dispute Settlement (ISDS) mechanism – also known as corporate courts.
ISDS allows corporations to sue governments for policies they allege damage the value of their investments. Globally, this mechanism has been used over 1300 times to challenge public policies in a range of areas such as climate action and minimum wage legislation.
Colombia has been subjected to 23 ISDS claims over the last decade, three of which were made by UK investors using the UK-Colombia treaty. At the end of 2023, Colombia’s pending ISDS claims exceeded $13 billion – equivalent to over 13% of the government’s annual budget.
Many of the cases facing Colombia have been raised by mining companies in direct response to measures taken by the Colombian Government to protect the natural environment and the rights of Indigenous peoples. For example, mining giant Glencore is suing Colombia after the Indigenous Wayuu people won a ruling against its coal mine which had dispossessed thousands and polluted vital water sources.
Remaining in the treaty exposes Colombia to further potential claims relating to fossil fuel projects, at a time when the country is making moves away from its oil and gas export dependence. At the UN climate summit COP28, Colombia was the first producer country to endorse the Fossil Fuel Non Proliferation Treaty, a proposed treaty that calls for a fast, fair and funded end to all fossil fuel developments.
The UN Special Rapporteur on human rights and the environment previously warned that agreements incorporating ISDS have “catastrophic consequences for the environment and human rights” and represent a “daunting obstacle” to governments’ climate plans.
In February this year, the previous UK Government exited a separate multilateral agreement containing the ISDS mechanism, the Energy Charter Treaty, citing its threat to efforts towards net zero.
Cleodie Rickard, trade campaigner at Global Justice Now said:
While in opposition, Labour rightly repeatedly raised concerns about corporate courts and their negative impacts on the climate, human rights and democracy. This opportunity to coordinate an end to the UK-Colombia BIT is a chance for them to turn words into action. Over the years, Colombia has been particularly devastated by massive claims over its moves to protect communities and ecosystems, and phase out fossil fuels.
Meanwhile, the UK’s own climate goals are in peril without further steps away from this regime of corporate ransom. As countries including Australia and the US reject the outdated system of ISDS, it’s time for ministers in the UK to work with Colombian counterparts to terminate both this treaty and its wider stock of investment deals.