A/HRC/30/44
or cluster bombs because contrary to international humanitarian law, thus “expropriating”
expected profits of the arms industry.
30.
It is not just a question of reforming the investor–State dispute settlement system for
the future, but imperative to review and revise existing bilateral investment treaties and free
trade agreements, which were never intended to become prisons for States. If investor–State
dispute settlement and ICSID have since mutated into institutions of economic coercion,
they must be dismantled and reinvented through the Vienna Convention on the Law of
Treaties.
IV. Normative framework
31.
Although bilateral investment treaties and free trade agreements have been on the
international agenda for decades, their human rights impacts have been underreported.
Apparently the siren call of potential profit and the over-optimistic forecasts promising
GDP growth and significant creation of jobs have been so seductive to some governments
that human rights considerations have been neglected and State functions compromised.
32.
Among the sources of law recognized by the International Court of Justice are the
general principles of law (art. 38 (1)(c) of the Statute of the International Court of Justice)
which inform both national and international legal orders. Among those fundamental
principles is good faith (bona fide), which has been incorporated into the civil codes and
Constitutions of many States, and means that the law must be coherent and cannot be used
antithetically to destroy rights. The Universal Declaration of Human Rights enshrines this
principle in article 30, which is reflected in article 5 of the two Covenants. Other relevant
general principles of law include the principles of proportionality, foreseeability, rebus sic
stantibus, clean hands, estoppel (ex injuria non oritur jus), the prohibition of abuse of
rights, entrapment and the prohibition of treaties or contracts that are contra bonos mores.
33.
Most States have enshrined in their Constitution and legislation the concept of ordre
public. A government that compromises its competence to defend and protect the interests
of the persons living under its jurisdiction betrays its raison d’être and loses its democratic
legitimacy.
34.
The large body of existing human rights treaties, protocols and declarations create a
constitutional framework that must be taken into account whenever a State enters into
agreements with other States and/or private-sector actors, including financial institutions
and transnational enterprises. The human rights regime, including international and regional
human rights treaties and the relevant ILO and WHO Conventions, must be treated as
superior to other agreements, including bilateral investment treaties and free trade
agreements. National courts and international tribunals and arbitration instances must be
subordinated to this regime.
35.
Among the rights that States must ensure are the rights to life, security of person,
participation in the conduct of public affairs, homeland, movement, health, education,
employment and social security. These commitments are enshrined, inter alia, in articles 1,
2, 6, 9, 12, 17, 25, 26, 27 of the International Covenant on Civil and Political Rights and
articles 1, 2, 5, 6, 7, 9, 10, 11, 12 and 13 of the International Covenant on Economic, Social
and Cultural Rights.
36.
The process of elaboration, negotiation and adoption of bilateral investment treaties
and free trade agreements must conform with the requirement of article 25 (a) of the
International Covenant on Civil and Political Rights to ensure participation by all
stakeholders. This entails a proactive obligation on the part of Governments to disclose the
necessary information and facilitate public participation. Access to information is an
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