A/HRC/30/44
improved labour standards, an independent judiciary, a clean environment and the right not
to be subjected to forced resettlement. Moreover, there is a legitimate concern that
international investment agreements might aggravate the problem of extreme poverty,17
foreign debt renegotiation, financial regulation and the rights of indigenous peoples,
minorities, persons with disabilities and older persons and other vulnerable groups.
10.
The Working Group on business and human rights has stressed in its reports that the
Guiding Principles on Business and Human Rights stipulate in principles 8 and 9 that
“States should ensure that governmental departments, agencies and other State-based
institutions that shape business practices are aware of and observe the State’s human rights
obligations” and that “States should maintain adequate domestic policy space to meet their
human rights obligations when pursuing business-related policy objectives with other States
or business enterprises, for instance through investment treaties or contracts”. Accordingly,
all international investment agreements under negotiation should include a clear provision
stipulating that in case of conflict between the human rights obligations of a State and those
under other treaties, human rights conventions prevail.
11.
The 1994 North American Free Trade Agreement (NAFTA) is an example of an
agreement that has led to relocation of manufacturing industries, resulting in loss of
employment in the United States (estimated at 850,000 jobs) and the proliferation of
assembly centres in Mexico, known as maquiladoras,18 where labour costs are lower and
social protection below ILO standards. NAFTA “provided investors with a unique set of
guarantees designed to stimulate foreign direct investment and the movement of factories
within the hemisphere … . Furthermore, no protections were contained in the core of the
agreement to maintain labor or environmental standards. As a result, NAFTA tilted the
economic playing field in favor of investors, and against workers and the environment”.19
Several international investment agreements are currently being negotiated, mostly in
secret, including the Transatlantic Trade and Investment Partnership (TTIP), the Trade in
Services Agreement, the Trans-Pacific Partnership and the Regional Comprehensive
Economic Partnership.20
12.
Numerous scholars and Nobel prize laureates in economics have already signalled
the dangers to democratic governance and human rights. Stiglitz states: “These agreements
16
17
18
19
20
Devinder Sharma, “‘Free’ trade killing farmers in India”, November 2007, available from
www.bilaterals.org/?free-trade-killing-farmers-in.
www.cepal.org/es/publicaciones/3839-proteccion-del-derecho-humano-al-agua-y-arbitrajes-deinversionhttp://cap-net-esp.org/document/document/181/agua_y_saneamiento_
tratados_de_protecci%C3%B3n_a_las_inversiones.pdf.
www.globalresearch.ca/the-free-trade-agreements-the-asia-europe-peoples-forum-call-toaction/5416888?print=1.
See www.hrw.org/news/1996/08/17/mexicos-maquiladoras-abuses-against-women-workers;
sdmaquila.blogspot.ch/2010/02/maquiladoras-101-english.html; and www.researchgate.net.
publication/266820089_Human_rights_violations_in_the_Maquiladora_Industry.
Robert E. Scott, “The high price of ‘free’ trade: NAFTA’s failure has cost the United States jobs
across the nation”, Briefing paper No. 147, Economic Policy Institute, 17 November 2003, available
from www.epi.org/publication/briefingpapers_bp147.
See www.mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-andAgreements/RCEP/; donttradeourlivesaway.wordpress.com/2015/06/11/press-statement-civil-societyraises-major-concerns-on-indias-engagement-with-the-massive-rcep-trade-deal/; and
trade.ec.europa.eu/doclib/docs/2006/december/tradoc_118238.pdf. The European Free Trade
Association is also negotiating free trade agreements: see
www.asean.org/images/2012/documents/Guiding%20Principles%20
and%20Objectives%20for%20Negotiating%20the%20Regional%20Comprehensive%20Economic%2
0Partnership.pdf.
7
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