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Colombia·Latin America·Energy·Trade & Economy·Diplomacy

Colombia weighs exit from investor-state arbitration system to speed energy transition

Wednesday, 22 April 2026, 06:41 · 1 min read

Colombian President Gustavo Petro has signalled his country may withdraw from the Investor-State Dispute Settlement (ISDS) system — an international arbitration mechanism that allows foreign companies to sue governments over policy decisions, such as the early closure of fossil fuel projects — arguing it obstructs the country's shift to clean energy. The move follows an open letter signed by over 200 economists and academics, including Nobel laureate Joseph Stiglitz and French economist Thomas Piketty, urging Colombia to lead a global exit movement from the system. However, legal experts caution that any withdrawal faces significant domestic hurdles, as Colombian trade agreements must pass through parliament and survive constitutional review, and note that the announcement may be partly driven by presidential elections scheduled for late May.

Sources
tazInvestitionsschutzabkommen: Kolumbien sagt leise Tschüss ↗︎
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