A/70/301
dispute settlement tribunals have been used to challenge me asures to improve public
health. As cited in the Independent Expert’s report, in the Philip Morris
(Switzerland) v. Uruguay (2010) case, the multinational tobacco company sued
Uruguay under the Switzerland-Uruguay bilateral investment treaty claiming that
the Uruguayan anti-smoking legislation devalued its investments. The same
company also filed a claim against Australia for its efforts to curb tobacco. Public
health issues, such as smoking, are currently increasing in indigenous communities,
and the prevalence of such problems can be higher than in non-indigenous
populations. Therefore, such investor-State dispute settlement claims have the
potential to disproportionally affect indigenous peoples.
B.
Systemic effects of investment and free trade regimes
44. International investment and free trade have a number of direct impacts on the
human rights of indigenous peoples, as discussed above. While that is highly
alarming in itself, it is also important to consider the systemic implications of the
collective impact of such agreements and practices at the national and international
levels. As some of the most historically marginalized groups within the international
system, those systemic impacts strongly affect the human rights of indigenous
peoples, who are already often highly vulnerable and bear a disproportionate burden
of the overall effects of investment and free trade regimes.
Asymmetry between the State and private actors
45. International investment and free trade agreements confer upon foreign
investors and transnational corporations very strong rights and enforcement
mechanisms. However, the rules governing the responsibilities of private actors are
often contained in so-called “soft” international law. The standards, which include a
number of voluntary or non-binding standards or recommendations, fall short of
legally binding instruments that allow for achieving balance in the rights and
responsibilities of those actors. While investors are therefore able to access a strong
and arguably disproportionate form of remedy, States and/or indigenous peoples are
often unable to effectively legally challenge corporate practices that severely
undermine the realization of human rights. That contributes to a dangerous
accumulation of power among international corporate actors, which impedes States’
abilities to act as an effective regulator and protector of human and indigenous
peoples rights.
Constriction of the policy and legislative space of States
46. Provisions within international investment and free trade agreements can
constrict the policy and legislative space in which Governments operate. That has
been referred to in literature about international investment agreements as a
“chilling effect” whereby the State becomes constrained in its ability to rule in the
public interest owing to a wish to avoid sometimes billion-dollar arbitration and
settlement costs. As described by the Special Rapporteur on the right of everyone to
the enjoyment of the highest attainable standards of physical and mental health,
“international investment agreements and investor-State dispute settlement systems
benefit transnational corporations at the cost of States ’ sovereign functions of
legislation and adjudication” (see A/69/299, para. 4).
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