Normative Intersections of Trade, Investment and Sustainability Measures

Abstract

This chapter briefly discusses the three ‘key points of tension’ or normative effects identified between the demands of trade and investment agreements that focus mainly on economic growth, and regulations for the environmental and social development, including the efforts of States to comply with specific trade and investment obligations in other international treaties. These points of tension are described and illustrated with interesting examples. The first tension involves the concern that new trade liberalization obligations of non-discrimination and most-favoured nation (MFN) treatment and new investment liberalization obligations, in certain specific sectors, could prevent States from effectively enacting trade-related measures to prevent unsustainable development. A second tension involves concerns that through a new trade and investment agreement, there will be increased incentives for trade or investment-led economic growth, which can exacerbate environmental and social problems that already exist at the domestic level due to lack of enforcement of the law. The third tension involves concerns that application of trade or investment rules for liberalization will inadvertently support unsustainable growth in obsolete technologies and sectors.