The Relationship between Foreign Investors’ Rights and International Human Rights and Environmental Obligations

Today, supporting foreign investors is considered as an instrument to achieve economic growth and development within national development plans, particularly in the developing states. Rising concerns for reasonable expectations of investors, have led to the increase of interests in investment in other countries. On the other hand and simultaneously, protecting human rights is recognized as one of the obligations of states. In some instances, human rights and environmental considerations, particularly economic, social and cultural ones clash with the obligations of host states to protect foreign investors. The question arising here is what legal mechanism may prevent such a clash? Investment-related arbitral jurisprudence demonstrates that arbitrators have avoided dealing with this conflict, recognizing it beyond the competence of investment arbitration, while the need for a reasonable effort to incorporate human rights obligations in investment treaties by way of revising them is felt more than before.