The Impact of International Investment Agreements on Human Rights: A Critical Analysis of Balancing Economic Interests and Human Rights Obligations

Abstract

International Investment Agreements (IIAs) have emerged as pivotal instruments in shaping global economic relations by fostering cross-border investments. These agreements, often aimed at promoting economic growth and stability, come with provisions that can significantly influence the human rights obligations of states. This study critically examines the interplay between IIAs and human rights, focusing on how economic interests are balanced against fundamental human rights obligations in both developed and developing countries.

The research investigates the legal and policy frameworks of IIAs, highlighting key elements such as investor-state dispute settlement (ISDS) mechanisms, expropriation clauses, and regulatory measures. These provisions, while essential for protecting investor interests, may inadvertently constrain states' ability to fulfill their human rights commitments, especially in areas like labor rights, environmental protection, and access to essential services. The study explores specific instances where IIAs have led to challenges in ensuring equitable human rights outcomes, such as disputes involving indigenous communities, public health policies, and social welfare programs. Study combines qualitative analyses of case law and treaty provisions with quantitative assessments of their socio-economic impacts. Case studies from Asia, Africa, and Latin America are presented to illustrate the practical implications of IIAs on human rights protection. The findings reveal a significant gap in the alignment of IIAs with international human rights standards, emphasizing the need for a more integrated approach that balances economic development with the protection of fundamental rights. The study concludes by proposing reforms to the existing IIA framework, advocating for the inclusion of explicit human rights provisions, enhanced transparency, and stronger accountability measures. It underscores the importance of fostering a harmonious relationship between economic governance and human rights, ensuring that international investment does not come at the expense of vulnerable populations or undermine state sovereignty in protecting public welfare.