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Article

18 Sep 2017

Author:
Diane Desierto, EJIL: Talk

Commentary: The ICESCR as a Legal Constraint on State Regulation of Business, Trade, and Investment: Notes from CESCR General Comment No. 24

...The implementation of the ICESCR (and related human rights) in international economic law cannot be relegated to the back end of issues of treaty interpretation and treaty application in world trade law disputes or investor-State arbitrations, but rather, should operate as an inbuilt constraint for States when bargaining the terms of their international economic agreements in the first instance.  When negotiating these international economic agreements,...States have to take into account: 1) the impact of treaty commitments on States’ social protection baselines under the ICESCR (“minimum core obligations”); 2) how the new treaty will affect the future ability of the State to progressively realise ICESCR rights, given the State’s continuing non-retrogression obligations under the ICESCR; 3) the model of development chosen by the State and how it will impact the State’s legal and/or constitutional duties to its citizens to respect, protect, and facilitate ICESCR rights; and 4) whether the design of the dispute resolution mechanism in the international economic agreement preserves the State’s present and future capacity and authority to respect, protect, and facilitate ICESCR rights – including questions of whether there are sufficient ‘exit’ and ‘voice’ mechanisms for local communities impacted by trade and investment operations; meaningful and not mere token participation in monitoring and oversight by all impacted constituencies; and sufficient broadening of the sources of information that either affect the investor’s risk and return calculus with respect to the host State of investment, or that which would affect the exporting firm’s regulatory expectations about the importing country.