A/HRC/36/23 become the preferred strategy to promote trade liberalization. Such treaties present opportunities for development by fostering economic activity and attracting a much-needed influx of investments to development projects. 44. Yet, free trade agreement and bilateral investment treaty negotiations may present challenges to the right to development given the uneven bargaining power of the parties with different levels of economic and technological development and capacities, and concerns among some countries about the transparency of negotiating processes. Human rights impact assessments offer an opportunity to address the question of whether free trade agreements and bilateral investment treaties are in accordance with the human rights obligations of States. 40 Such impact assessments should, at a minimum, involve independence, transparency, inclusive participation, and expertise and funding, and have the capacity to effectively influence policymakers (see A/HRC/19/59/Add.5, appendix, para. 4). These concerns together make a strong case for expanding the democratic space to the optimum. 45. Concerns have also been raised that free trade agreements and/or bilateral investment treaties may have a number of retrogressive effects on the protection and promotion of human rights, including by lowering the threshold of health protection, food safety and labour standards. Investment agreements might aggravate extreme poverty, jeopardize fair and efficient foreign debt renegotiation and affect the rights of indigenous peoples, minorities, persons with disabilities, older persons and others in vulnerable situations.41 Without assessments of potential human rights impacts, free trade agreements and bilateral investment treaties might jeopardize the call contained in the Declaration for an enabling environment for development, an element that is also essential to realizing the Sustainable Development Goals. 46. Increased foreign direct investment flows to developing countries can contribute to reducing poverty and promoting prosperity. However, whether this happens depends on the nature of the strategies pursued to attract these investments and whether investments are made in a responsible manner, i.e., whether they are conducive to social development, protective of the environment and respectful of the rule of law and fiscal obligations in host countries. Investors and States must ensure that profit considerations do not trump human rights protection (see E/CN.4/2006/26, para. 59). Some businesses have been shown to avoid paying their share of tax by storing their wealth in offshore tax havens, 42 in direct contravention of the fair distribution of development benefits required under the Declaration. The capacity of some States to ensure that transnational corporations do not breach labour or environmental standards, or jeopardize their capacity to seek remedies and adopt other policies to protect and promote the right to development and the economic, social and cultural rights of their populations, is limited. Individuals and peoples deserve protection and remedies against corporate abuse, land grabbing and exploitation (see A/HRC/33/40, para. 77). 47. The Guiding Principles on Business and Human Rights provide a framework applicable to all business enterprises for how to prevent and address human rights abuse linked to business activities. 43 In 2014, the Human Rights Council created an intergovernmental working group to draft a legally binding instrument on the human rights obligations of transnational corporations.44 Special procedure mandate holders have argued that such an instrument could provide a normative framework aimed at ensuring that transnational corporations contribute to development. They have also suggested that any 40 41 42 43 44 See the guiding principles on human rights impact assessments of trade and investment agreements (A/HRC/19/59/Add.5). See www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=16031. See www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=21539&LangID=E. Since 2014, OHCHR has launched two projects aimed at creating a fairer and more effective system of domestic law remedies in cases of serious corporate-related human rights abuses and providing credible and workable guidance to States on the matter. For more information, see www.ohchr.org/Documents/Issues/Business/DomesticLawRemedies/RemedyProject2.pdf. Resolution 26/9. For more information, see www.ohchr.org/EN/HRBodies/HRC/WGTransCorp/Pages/IGWGOnTNC.aspx. 11