Integrating Investor Obligations and Corporate Accountability Provisions in Trade and Investment Agreements

This report summarizes an expert meeting co-hosted by IISD and FES in 2018 regarding the integration of investor obligations into trade and investment agreements. It addresses the current asymmetry where investors have strong protections but few obligations. The report proposes model provisions covering compliance with domestic law, anti-corruption, human rights, labour and environmental standards, transparency of contracts, pre-establishment impact assessments, and the prevention of tax base erosion and profit shifting (BEPS). It also explores enforcement mechanisms, including state counterclaims in ISDS and civil liability in home-state courts.

• Experts identified a significant imbalance in the current international investment law regime, where foreign investors possess broad rights backed by strong dispute settlement mechanisms, while host states face non-reciprocal obligations that restrict their policy space for public interest regulation.
• The meeting discussed the inclusion of a general obligation for investors to comply with domestic laws throughout the entire life cycle of an investment. While some viewed this as obvious, others argued it provides clarity for investors and a basis for states to enforce domestic laws via international mechanisms.
• To combat corruption, participants supported provisions that would deny investors access to Investor-State Dispute Settlement (ISDS) if an investment was made through corruption. They suggested aligning such language with the UN Convention against Corruption and using a fault-based standard of proof rather than strict liability.
• The report proposes that investors be obligated to respect internationally recognized human rights, labour, and environmental standards. Experts suggested that these obligations should extend beyond the immediate workplace to include the supply chain and be based on standards such as the OECD Guidelines for Multinational Enterprises and IFC Performance Standards.
• Participants emphasized the need for transparency regarding contracts and payments between foreign investors and host governments to prevent corruption and safeguard public interest. They advocated for making these documents public, potentially via the internet, and extending these requirements beyond the extractive industries sector.
• The meeting highlighted the importance of pre-establishment social and environmental impact assessments conducted by independent entities. Such assessments should be transparent, include input from experts and affected communities, and be completed in time to influence the decision to grant the investment.
• Regarding tax practices, the report addresses Tax Base Erosion and Profit Shifting (BEPS). While participants agreed these practices impede sustainable development, some cautioned against requiring investors to alter legal corporate practices and suggested focusing on disclosure-related tax obligations or following OECD BEPS Actions.
• To improve accountability, the report suggests allowing host states to initiate counterclaims against investors in ISDS proceedings and enabling affected individuals to bring civil liability claims in the investor's home state courts, thereby overcoming barriers like the 'forum non conveniens' doctrine and complex corporate veils.

APA

International Institute for Sustainable Development (2018). Integrating Investor Obligations and Corporate Accountability Provisions in Trade and Investment Agreements. https://www.iisd.org/system/files/publications/report-expert-meeting-versoix-switzerland-january-2018.pdf

Chicago

International Institute for Sustainable Development. Integrating Investor Obligations and Corporate Accountability Provisions in Trade and Investment Agreements. 2018. https://www.iisd.org/system/files/publications/report-expert-meeting-versoix-switzerland-january-2018.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Integrating Investor Obligations and Corporate Accountability Provisions in Trade and Investment Agreements |date=2018 |url=https://www.iisd.org/system/files/publications/report-expert-meeting-versoix-switzerland-january-2018.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2018integrating, author = {{International Institute for Sustainable Development}}, title = {{Integrating Investor Obligations and Corporate Accountability Provisions in Trade and Investment Agreements}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/system/files/publications/report-expert-meeting-versoix-switzerland-january-2018.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }