11
and securities regulation, investment, export credit and insurance, trade
and labour – to be informed of and act in a manner compatible with the
Governments’ human rights obligations.
9. States should maintain adequate domestic policy space to meet their
human rights obligations when pursuing business-related policy
objectives with other States or business enterprises, for instance through
investment treaties or contracts.
Commentary
Economic agreements concluded by States, either with other States
or with business enterprises – such as bilateral investment treaties, freetrade agreements or contracts for investment projects – create economic
opportunities for States. But they can also affect the domestic policy
space of Governments. For example, the terms of international investment
agreements may constrain States from fully implementing new human rights
legislation, or put them at risk of binding international arbitration if they
do so. Therefore, States should ensure that they retain adequate policy
and regulatory ability to protect human rights under the terms of such
agreements, while providing the necessary investor protection.
10. States, when acting as members of multilateral institutions that deal
with business-related issues, should:
(a) Seek to ensure that those institutions neither restrain the ability
of their member States to meet their duty to protect nor hinder
business enterprises from respecting human rights;
(b) Encourage those institutions, within their respective mandates and
capacities, to promote business respect for human rights and,
where requested, to help States meet their duty to protect against
human rights abuse by business enterprises, including through
technical assistance, capacity-building and awareness-raising;
(c) Draw on these Guiding Principles to promote shared understanding
and advance international cooperation in the management of
business and human rights challenges.
Select target paragraph3
Add to table of contents