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on cigarettes, corporate income taxes and natural resources taxes, have been
challenged under the fair and equal treatment clauses in international investment
agreements. A tax imposed only on non-indigenous people (which can include
foreign investors) could violate national treatment pro visions, for example the
provisions within the United States bilateral investment treaty model.
39. The threats to the right to self-determination and self-governance posed by
investment and free trade agreements compound long -standing and systemic
violations of the rights of indigenous peoples. The violations have included gross
and sustained assaults on the cultural integrity of indigenous peoples; the
denigration and non-recognition of customary laws and governance systems; a
failure to develop frameworks that allow indigenous peoples to exercise their right
to development and self-governance; and practices that strip indigenous peoples of
autonomy over their lands and natural resources. It is in that sense that international
investment agreements are contributing to the perpetuation of colonial and postcolonial power structures that have caused the systematic racism and discrimination
towards, and the marginalization and exploitation of, indigenous peoples.
40. Such unequal power relations between indigenous peoples and corporations
and States also contribute to endemic levels of poverty among indigenous peoples.
Indigenous peoples account for 5 per cent of the world ’s population, while
representing 15 per cent of those living in poverty. As many as 33 per cent of all
people living in extreme rural poverty globally are from indigenous communities.
Those figures are particularly alarming given the wealth of natural resources that
are located within indigenous territories. That degree of poverty is a viola tion of
indigenous peoples’ rights to development, as well as of their economic and social
rights to an adequate standard of living, housing, food, water, health and education.
41. The violations of indigenous peoples’ rights to self-determination and other
economic and social rights are strongly linked to indigenous peoples’ historical
experiences of marginalization, dispossession from and environmental destruction
of their ancestral lands and lack of self-determination over development pathways.
The impacts of investment and free trade agreements exacerbate all of those factors.
In addition, the systemic effects of such agreements, discussed below, also
contribute to the causes of poverty and the denial of the right to self -determination
among indigenous communities.
42. International investment agreements also have the potential to negatively
affect the realization of a number of the economic and social rights of indigenous
peoples. The costs borne by States in defending themselves in investor -State dispute
settlement cases and in paying awards when defeated can be extremely high. That
diverts public resources, which could limit the ability of States to invest in the
realization of economic and social rights. International investment agreements can
also drive and maintain the practice of privatizing public services and goods,
including health care and water. For example, expropriation and fair and equal
treatment clauses could make it prohibitively expensive for Governments to revoke
private contracts for the provision of public health services. Given the private
sector’s poor track record of catering to the needs of the most marginalized and
vulnerable, demonstrated, for example, by the privatization of water, the impact on
the economic and social rights of indigenous peoples is significant.
43. In addition, as discussed in the upcoming report of the Independent Expert on
the promotion of a democratic and equitable international order, investor -State
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