Does local law allow for a choice of governing law?
Frequency/market practice: Yes, if disputes under the agreement are validly referred to international arbitration (which requires a significant connection with a jurisdiction other than Colombia - e.g., a party incorporated abroad, among others). The international arbitral tribunal will decide in accordance with the rules of law chosen by the parties.
What is the common governing law?
Frequency/market practice: Aside from Colombian law, New York law is a popular choice for large transactions.
Is litigation or arbitration more common? If arbitration, where?
Frequency/market practice: Domestic arbitration under the Bogota Chamber of Commerce rules is more common for small and mid-size transactions. In larger transactions, arbitration under International Chamber of Commerce (ICC) rules in a venue that is considered neutral is common.