Chile withdrew from the Andean Common Market (ANCOM) in 1976 and ceased to follow ANCOM's foreign investment code Decision 24. Since that time ANCOM and Chile have effected changes in their foreign investment codes. ANCOM introduced flexibility into Decision 24 which brought the Decision more in line with prevailing economic conditions without altering its basic theoretical outlook. Chile, on the other hand, passed an amendment to its already liberal national foreign investment statute. The amendment further opened the door to unrestricted foreign investment in Chile and has, in the author's view, contributed to a loss of national control over the course of development and the reestablishment of dependency on more developed nations. The author notes that Decision 24 still causes conflict in-ANCOM, but that the recently established Andean Court of Justice could help to clarify Decision 24's norms and establish a stable investment climate in the ANCOM nations.
Michael G. Thornton,
Since the Breakup: Developments and Divergences in ANCOM's and Chile's Foreign Investment Codes,
7 Hastings Int'l & Comp. L. Rev. 239
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