By Erick Cornejo
The Economic Commission of the Legislative Assembly agreed today to issue a Favorable Resolution to amend Article 15 of the "Investment Law" which relates to the settlement of disputes.
The Members of the Legislative Assembly who are part of the commission reached a consensus to delete three subsections of the current regulations and established that "if disputes or differences which may arise between domestic and foreign investors and the state, regarding those investments, made in El Salvador, the parties may appeal to the competent local tribunal, according to current legislation and legal procedures."
These reforms aim to give confidence to the country, create more employment, and to make it more attractive in the area of investment and development.
The President of the Commission, Eduardo Barrientos, said: " we cleaned up Article 15 and now propose that the differences between local and foreign investors may be resolved here in the country, with local law, only as a last resort may these disputes be resolved by international mechanisms".
Moreover, the Member of CD Parliamentary Group, Douglas Aviles, said that "what we have done is to bring legislation in line with the recent Association Agreement with Europe, reforming Article 15 and including an aspect relating to the settlement of disputes which provide that any controversy that is not under a treaty or agreement will be adjudicated through local legislation."
Finally, the FMLN Parliamentary Member, and Secretary of the Commission, Blanca Coto, said: "This day we have strengthened the legal framework, we have given further support to the Government of the Republic of El Salvador for the defense of the interests of Salvadorans, in light of disputes that may result in corporations launching law suits against the Salvadoran state.
Tuesday's session was attended by representatives of the Ministry of Economy.
The Favorable Resolution and the relevant draft decree may be submitted for approval by the plenary Legislative Assembly on Thursday.