A/HRC/30/44
40.
Universal and regional human rights treaties, including the International Covenant
on Civil and Political Rights and the International Covenant on Economic, Social and
Cultural Rights, the European Convention on Human Rights, the American Convention on
Human Rights and the African Charter on Human and Peoples’ Rights necessarily take
precedence over other treaties. As the European Court of Human Rights decided in its 1989
judgment in Case of Soering v. the United Kingdom, the obligations under the European
Convention on Human Rights prevail over those under extradition treaties, mutatis
mutandis over bilateral investment treaties and free trade agreements.
V. Systemic reform
41.
Extraordinary problems require bold solutions. Anti-democratic investor–State
dispute settlement paroxysms can be neutralized by revision or termination of such dispute
settlement. If States can adopt extraordinary measures such as bailing out delinquent banks,
a fortiori they can adopt measures to protect the welfare of the population. Protective
actions by a State whose economy, agriculture or industry is in danger of failure because of
the sometimes unpredictable effects of bilateral investment treaties and free trade
agreements may be justifiable under the force majeure principle.
42.
The validity of bilateral investment treaties and free trade agreements should be
tested under the rules of the Vienna Convention on the Law of Treaties. For instance, a
treaty may be void if it can be established that there was a manifest violation of the State’s
Constitution, errors relating to a fact or situation which was assumed to exist at the time the
treaty was concluded and which formed an essential basis of its consent to be bound to the
treaty (art. 48), fraudulent conduct by a negotiating party (art. 49), deliberately misleading
or spurious claims, corruption (art. 50), coercion (arts. 51–52) or conflict with a peremptory
norm of international law (art. 53). Treaties may also be terminated or their application
suspended pursuant to the doctrine of material breach (art. 60), subsequent impossibility of
performance (art. 61) or fundamental change of circumstances (art. 62). Normally, treaties
contain provisions for denunciation or withdrawal. In the absence of such provisions, such a
right may be implied by the nature of the treaty (art. 56). To the extent that bilateral
investment treaties and free trade agreements lead to violations of human rights, they
should be modified or terminated. Articles 65 et seq. lay down the procedure.
43.
In a famous article in the American Journal of International Law, Verdross
elucidated which treaties can be considered contra bonos mores: “To this problem the
decisions of the courts of civilized nations give an unequivocal answer. The analysis of
these decisions shows that everywhere such treaties are regarded as being contra bonos
mores which restrict the liberty of one contracting party in an excessive or unworthy
manner or which endanger its most important rights. This and similar formulas prove that
the law of civilized states starts with the idea which demands the establishment of a
juridical order guaranteeing the rational and moral coexistence of the members. It follows
that all those norms of treaties which are incompatible with this goal of all positive law — a
goal which is implicitly presupposed — must be regarded as void.”54 Moreover, pursuant to
54
Alfred Verdross, “Forbidden Treaties in International Law”, American Journal of International Law,
Vol. 31, No. 4 (1937), pp. 571 et seq. Verdross, “Les principes du droit et la jurisprudence
internationale”, Recueil des Cours de l'Académie de Droit International, La Haye, (1935), pp. 195–
249. Robert Kolb, The International Court of Justice, Oxford, 2013, p. 81. Irmgard Marboe and
August Reinisch, “Contracts between States and foreign private law persons” in Max Planck
Encyclopedia of Public International Law, vol. II, pp. 758–766. Oxford, 2012. felj.org/sites/
default/files/elj/Energy%20Journals/Vol17_No1_1996_article_international.pdf.
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