A/HRC/33/42
44.
In Glamis Gold v. United States (2009), an arbitration panel found against the
company, which had been refused access to a sacred area of the Quechan tribal nation. The
decision hinged on the tribunal’s position that its role was to assess if the customary
international law standard of fair and equitable treatment had been breached and not to
assess if the State had fairly balanced the competing rights of the Quechan nation and the
company. It held that the State had been justified in relying upon the opinion of the
professionals it had engaged and that, as the investor’s expectations had not been induced
by the State in a quasi-contractual manner, they did not trigger a treaty breach. The decision
also pointed to the significance of the highly regulated environment in California with
respect to environmental measures in general and mineral exploration in particular, which
should have tempered the investor’s expectations. The tribunal accepted the Quechan
amicus submission but did not engage with its argument that international human rights law
as it pertained to indigenous peoples was applicable in the case.
45.
In Grand River Enterprise Six Nations, Ltd. v. the United States (2011), a tobacco
company owned by members of the Canadian Haudenosaunee nations challenged measure
taken by the United States. One of the issues raised by the company was the absence of
prior consultation in relation to some of the measures. While finding that no expropriation
had occurred, the tribunal stated that it may well be that there does exist a principle of
customary international law requiring governmental authorities to consult indigenous
peoples as collectivities on governmental policies or actions significantly affecting them.
As the enterprise was owned by individuals, the tribunal held that it did not have to address
the issue of prior consultation. It did, however, add that a good case could be made that
consultations should have occurred with governments of the native American tribes or
nations in the United States, whose members and sovereign interests could, and apparently
are, being affected by the measures to regulate commerce in tobacco.12
46.
In the Permanent Court of Arbitration case South American Silver Mining v. the
Plurinational State of Bolivia, the company is seeking $387 million for the alleged
expropriation of 10 mining concessions and violations of fair and equitable treatment,
pursuant to the bilateral investment treaty between the United Kingdom of Great Britain
and Northern Ireland and the Plurinational State of Bolivia. The company holds that it made
legitimate efforts with the communities to achieve an overall consent and that opposition to
the project is from a small group of illegal miners and certain indigenous organizations,
with the Government fomenting conflict. It argues that the communities have repeatedly
requested it to move forward with the project, and alleges that the Plurinational State of
Bolivia failed to provide full protection and security, noting its “patently unreasonable”
decision not to prosecute indigenous leaders, given the implications for its investment. 13
47.
The Plurinational State of Bolivia responded that: (a) it had acted in the public
interest and had been justified in reverting ownership to the State in accordance with the
principles of proportionality and necessity, to avoid security concerns arising out of
indigenous peoples’ opposition to the project and to restore public order; (b) it was
enforcing domestic legislation that should have tempered the company’s legitimate
expectations, as the State made no commitment to stability; (c) the project violates rights
recognized in the United Nations Declaration on the Rights of Indigenous Peoples; (d) the
company had attempted to fabricate consent in total disregard for the right to selfgovernment of the concerned indigenous peoples; (e) the bilateral investment treaty had no
applicable law clause, so there should be “systemic interpretation” in accordance with
article 31 (3) (c) of the Vienna Convention on the law of treaties, including human rights
12
13
See Grand River Enterprises Six Nations, Ltd. v. United States, paras. 210 and 212, available from
www.state.gov/documents/organization/156820.pdf.
See notice of arbitration and claimant’s reply, available from https://pcacases.com/web/view/54.
11
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