The Andean approach to stabilisation clauses

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.