Title: The Andean approach to stabilisation clauses

Authors: Camilo A. Rodriguez-Yong; Karol X. Martinez-Muñoz

Addresses: Universidad del Rosario Law School (Colombia), Bogotá, Colombia. ' Universidad del Rosario Law School (Colombia), Bogotá, Colombia

Abstract: This article aims to recognise the features that identify the Andean approach as a region of the stabilisation clauses by analysing the experience of Colombia, Ecuador, Peru and Bolivia. This approach is characterised by: 1) involving a classic freezing stabilisation clause; 2) being used as an instrument to promote investment in the country; 3) keeping the State power to enact new laws; 4) being utilised by investors of multiple economic sectors and activities; 5) being incorporated in contracts of private and administrative character; 6) being entered into by national and foreign investors and natural and legal persons; 7) being regulated by a statute; 8) imposing a mandatory minimum amount for the investment; 9) being exceptionally onerous; 10) having a temporary character, and finally; 11) guaranteeing legal stability over tax law and other law areas.

Keywords: foreign investment; stabilisation clauses; Andean countries; private contracts; legal stability; Andes; Colombia; Ecuador; Peru; Bolivia; freezing clauses; state powers; new laws; multiple economic sectors; multiple economic activities; administrative contracts; national investors; foreign investors; natural persons; legal persons; regulation; legislative acts; statutes; legislation; mandatory amounts; minimum amounts; tax law; taxation; private law.

DOI: 10.1504/IJPL.2013.050528

International Journal of Private Law, 2013 Vol.6 No.1, pp.67 - 87

Published online: 29 Nov 2013 *

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