International Investment Agreements, Business and Human Rights

The document analyzes how international investment agreements (IIAs) and investor-state dispute settlement (ISDS) mechanisms interact with human rights obligations. It finds that most IIAs are silent on human rights, and the current ad hoc nature of investor-state arbitration creates legal uncertainty for states attempting to enact new human rights or environmental regulations. The author argues that the lack of transparency in these proceedings undermines democratic accountability and recommends the development of model clauses to protect the 'right to regulate' and ensure human rights values are embedded in investment law.

• The vast majority of the over 2,500 existing international investment agreements (IIAs) do not contain express provisions regarding human rights obligations for states or investors.
• The European Free Trade Area-Singapore Agreement of 2002 and the 2007 COMESA Agreement are rare examples of IIAs mentioning human rights, though the former does so only in a preambular paragraph and the latter as a future working item.
• Investor-state arbitration lacks consistency and predictability, with different tribunals applying irreconcilable approaches to 'indirect expropriation' and 'fair and equitable treatment' standards.
• The 'right to regulate' in many IIAs is rendered legally ineffective by qualifying language requiring that regulatory measures be 'consistent with' the treaty's investor protections.
• Stabilization clauses in Host Government Agreements (HGAs) can override a state's duty to protect human rights by allowing investors to avoid compliance with new social or environmental laws or seek compensation for them.
• The high level of confidentiality in investor-state arbitrations, particularly under UNCITRAL and ICSID rules, undermines government accountability and the democratic right to information.
• Investment liberalization commitments can constrain a state's ability to promote local economic rights by prohibiting 'performance requirements' that mandate local sourcing, training, or research.
• International human rights law can be raised as a legal argument in investor-state arbitrations, as seen in cases involving environmental impact assessments and cultural heritage sites.

APA

Mann, H. (2008). International Investment Agreements, Business and Human Rights. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/iia_business_human_rights.pdf

Chicago

Mann, Howard. International Investment Agreements, Business and Human Rights. International Institute for Sustainable Development, 2008. https://www.iisd.org/system/files/publications/iia_business_human_rights.pdf.

Wikipedia

{{cite report |last1=Mann |first1=Howard |title=International Investment Agreements, Business and Human Rights |publisher=International Institute for Sustainable Development |date=February 2008 |url=https://www.iisd.org/system/files/publications/iia_business_human_rights.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mann2008international, author = {Mann, Howard}, title = {{International Investment Agreements, Business and Human Rights}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = feb, url = {https://www.iisd.org/system/files/publications/iia_business_human_rights.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }