(The following press release issued by Ministry of Trade and Industry was
SINGAPORE AND COLOMBIA SIGN INVESTMENT GUARANTEE AGREEMENT TO PROMOTE GREATER
The Singapore Minister for Trade and Industry, Mr Lim Hng Kiang and Colombia
Minister of Trade, Industry and Tourism, H.E. Sergio Díaz-Granados Guida,
signed the Colombia-Singapore Investment Guarantee Agreement (IGA) in Bogota,
Colombia, on 16 July 2013 (Colombian time).
The agreement serves to protect investors’ interests from Colombia and
Singapore and opens up more business and investment opportunities for Colombian
and Singapore companies. It underscores the increasing bilateral trade and
growing economic ties between the two countries.
Singapore Minister Mr Lim Hng Kiang said: “The Investment Guarantee Agreement
was a direct and significant outcome of the state visit by His Excellency
President Santos to Singapore in May 2012. This bilateral investment agreement
will provide a legal framework to give greater confidence to investors from
both sides, thus promoting even greater investment flows between our countries.
It also reaffirms the friendship between our countries and our commitment to
Agreement opens up more opportunities
Colombia is Singapore’s 6th largest trading partner in Latin America and the
Caribbean. Bilateral trade between Colombia and Singapore has been increasing.
In 2012, Colombia’s bilateral trade with Singapore amounted to S$1.06 billion,
an increase of 40.1% from 2011. Singapore’s exports to Colombia amounted to
S$138.7 million in 2012, a 15.4% increase from 2011. Top exports include civil
engineering equipment parts and medical apparatus.
Colombia also offers access to larger markets under the Pacific Alliance, which
was established in 2012 with Mexico, Chile and Peru. This creates a combined
market of 215 million consumers with a total GDP of more than US$2 trillion.
There are currently a number of Singapore firms with a presence in Colombia,
for example, Olam International Limited, Pacific International Lines (PIL) and
Hyflux. Minister Lim met up with some of these Singapore companies, as well as
Colombian firms, during his trip.
With this IGA, Singapore companies can further explore new business and
investment opportunities in Colombia, especially in sectors such as oil and
gas, infocomms technology, water and master-planning (urban, industrial and
About the agreement
The IGA was first proposed by Minister Diaz-Granados during the State Visit of
Colombian President Juan Manuel Santos to Singapore in May 2012. Three rounds
of negotiations were held before the agreement concluded in April 2013. The
agreement will enter into force after both countries complete their requisite
internal legal procedures.
The IGA puts in place a legal framework to protect bilateral investments. Key
features of the agreement include:
i. non-discriminatory treatment for Singapore investors and investments in
Colombia, and vice versa;
ii. prompt, adequate and effective compensation in the event of
iii. guarantee transfers of capital, proceeds and other funds related to
iv. access to international arbitration to resolve investment disputes.
Singapore currently has 41 IGAs in force.
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