Investment treaties
Investment treaties must be inclusive, sustainable and fair. That means that they must not put the interests of companies before those of people and their living environment.
International investment flows are currently regulated by some 3,000 bilateral investment treaties (BITs) and other international investment (IIAs). These agreements and treaties were originally set up to promote foreign investment, but very little has come of their promised beneficial effects. The time has come to radically change the international system of investment treaties. It is not only clear that investment treaties do not promote foreign investment, but also that in many cases they seriously harm the interests of developing countries.
Far-reaching rights for investors
The treaties grant foreign investors far-reaching rights and are increasingly used to exert pressure on governments not to take measures that are not in the investors’ interests. The Investor-to-State-Dispute-Settlement (ISDS) system allows businesses or investors to lodge charges against states beyond the jurisdiction of international courts. ISDS tribunals are not subject to the laws of countries that are charged and only work in one direction: only businesses may submit complaints, without having to do anything to defend themselves.
Dispute settlement beyond the reach of international courts
Through ISDS, foreign investors can oppose a wide range of national government policies and measures, including social and environmental rules. The rulings of an ISDS tribunal are definitive, binding and internationally enforceable. A large proportion (around 60%) of all ISDS cases are brought by companies against poorer countries, and the number of complaints has risen sharply in the past 10-20 years. In the past five years, one new ISDS case has been submitted per week. At the end of 2017, UNCTAD reported that successful complainants received an average of $522 million in compensation. Countries will often decide not to introduce a certain measure rather than face such high penalties, with all the consequences that will have for its people.
Many ISDS claims from the Netherlands
ISDS claims have already caused considerably harm in many developing countries. The second highest number of ISDS procedures are initiated from the Netherlands, after the US. That is partly because of the almost 100 BITs that the Netherlands has concluded, including with developing countries. There are also many ‘letter-box’ companies registered in the Netherlands, which can use the Dutch BITs to lodge complaints against countries in which they invest. The increasingly negative effects of ISDS in investment treaties is one of the main reasons why more and more developing countries want to terminate their investment treaties with the Netherlands.
Both ENDS is working to reform and terminate BITs
Both ENDS has long been drawing attention to the negative consequences of investment treaties on developing countries and is particularly concerned about the ISDS mechanisms in the current treaties. To make investment policies fair and sustainable and to ensure that they do not harm people and the environment, the ISDS mechanism included in all these treaties must be removed as soon as possible.
Dutch model BIT
In 2018, the Netherlands is revising the model text of its BITs. As the text will serve as an example for many other European countries, it is important that it is as inclusive and sustainable as possible. Together with Dutch and foreign partners, Both ENDS is providing input for the new text, naturally in the hope that its recommendations are taken up. We are also working with our partners to raise awareness of the consequences of investment treaties and ISDS, with the aim of exerting public pressure on the decision-making process relating to the model text.
Terminating BITS
Outside the Netherlands, we are also making our concerns and criticisms clear in other institutions, like UNCTAD and the European Parliament. We are supporting local groups in Southern countries in their efforts to terminate existing treaties, so that new investment policies can be developed that put people and the environment first and ensure that investments make a positive contribution to sustainable development.
For more information
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Dossier /
Trade agreements
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Dossier /
Fair Green and Global Alliance (FGG)
Together with civil society organisations from all over the world, the Fair Green and Global (FGG) Alliance aims for socially just, inclusive and environmentally sustainable societies in the Netherlands and the Global South.
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Publication / 30 October 2023
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News / 17 July 2023
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Letter / 26 June 2023
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Event / 24 May 2023, 16:00 - 17:30
The Future We See: economic systems
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A wide range of great ideas about a transition to sustainable and just economic systems already exist, including ways to get there and examples that show that it is really possible. In this talkshow, we highlight some of these examples and hope to fuel the dialogue about this topic.
Inspired? Join our 'The Future We See' - talkshow on May 25th! You can either attend live or online, quietly listen or actively participate in the discussion. We hope to see you there!
Get your free tickets for the liveshow (limited!) or to join online here!
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Press release / 23 May 2023
60th anniversary of Dutch bilateral investment treaties no cause for celebration
On 23 May, the Netherlands celebrates 60 years of bilateral investment treaties (BITs). The first BIT was signed with Tunisia in 1963. These treaties were intended to make an important contribution to protecting foreign investments by Dutch companies. A study by SOMO, Both ENDS and the Transnational Institute (TNI), however, shows that in practice they mainly give multinationals a powerful instrument that has far-reaching consequences people and the environment worldwide.
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Publication / 23 May 2023
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News / 18 April 2023
The Future We See - dialogues about sustainable and just global systems
In these uncertain times of accumulating national, international and global crises, we need hope and inspiration more than ever. Fortunately, many hopeful ideas and initiatives are already existing that show that it is indeed possible to change the world - and especially the systems behind it - in a sustainable and fair way. What opportunities are to be found, what is hopeful, what is already happening and how can we, as the Netherlands, respond to this?
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Publication / 7 July 2022
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Press release / 30 June 2022
Civil society calls upon EU and Indonesia to respect the rights of Indonesia’s farmers
89 NGOs and farmers' organisations from Indonesia, the EU and around the world sent open letters to the EU Commission and the Indonesian government today, calling on them to refrain from any clause that restrict farmers' rights in a future free trade agreement.
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News / 9 June 2022
Burghard Ilge and Fernando Hernandez: "This WTO conference will be more important than ever"
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News / 25 April 2022
Call for sign-on: No to UPOV in Indonesia
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Publication / 12 April 2022
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Event / 21 February 2022, 16:00 - 17:30
Webinar and launch of new publication about EU-Mercosur
What is the EU-Mercosur association treaty and why is it controversial? What could be the implications of the treaty for people and their livelihoods both in EU and Mercosur countries? For more information about these and other issues, see our new publication and join our interactive webinar next week!
Register here
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Blog / 18 February 2022
This is what a fair and sustainable Africa strategy looks like
Minister Liesje Schreinemacher for Foreign Trade and Development Cooperation recently made her first working visit, to Kenya and Uganda. With this visit, the minister made a flying start in honouring the pledge in the new government's coalition agreement to formulate a 'targeted Dutch Africa strategy'. Such a strategy is desperately needed as, too often, our foreign trade is conducted at the expense of people and the environment, including in countries in Africa. The new strategy presents a perfect opportunity to ensure that the 'trade and aid' agendas are closely aligned.
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Blog / 10 December 2021
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Event / 6 December 2021, 14:00 - 15:15
WEBINAR: EU's push for strong Intellectual Property Rights (IPR) on seeds
The European Union's (EU) foreign trade policy has many implications for the sustainability of food systems in developing countries, heavily impacting farmers, breeders, and citizens. The unhidden promotion by the EU of strong intellectual property rights on plants affects food systems from its very basis, i.e., the seeds that are available for farmers to grow. Amongst these intellectual property rights, the main instrument that is advocated by European authorities is the 1991 Act of the UPOV Convention, which provides exclusive rights to breeders over the propagating material of new plant varieties, while diminishing the rights of others to use the material for further breeding and hampering with the rights of farmers to freely save, use, exchange and sell their seeds.