Both ENDS
From 26-29 November 2024, Both ENDS and its partners will host the Civil Society Forum on Investment Policies, Climate and Sustainable Development Goals in Entebbe, Uganda. Our colleagues Iván and Fernando explain the importance of this event: “Through this event, we aim to provide an in-depth perspective on the impact of current investment policies on climate and environmental issues, with a strong focus on the African continent.”
The government of Kenya has officially terminated its bilateral investment treaty (BIT) with the Netherlands, marking a significant win for economic justice and environmental protection. Kenya’s decision reflects a growing global trend of rethinking outdated treaties that often prioritize corporate interests over public welfare. The Dutch Minister for Foreign Trade and Development recently confirmed that Kenya unilaterally ended the treaty in December 2023, rendering it inoperative from 11 June 2024. Kenya now joins South Africa, Tanzania, and Burkina Faso as the fourth African country to terminate its BIT with the Netherlands.
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.
Over 70 organisations worldwide have signed an open letter to call upon the Dutch government to vote against CETA - the 'Comprehensive Economic and Trade Agreement'between Canada and the EU this week. They have serious concerns about the negative global social and environmental impacts of the CETA trade deal and similar upcoming European Union's trade agreements.
Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ (ISDS) clauses that are included in many such treaties.
In Indonesia, US-based mining companies succeeded to roll back new laws that were meant to boost the country’s economic development and protect its forests. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ (ISDS) clauses that are included in many such treaties.
Many countries are led to believe that signing a bilateral investment treaty (BIT) or international investment agreement will open the door to foreign investment that contributes to economic development and prosperity. But the evidence tells a different story.
In 2001 Tanzania and the Netherlands signed a treaty only known to a few; a so-called Bilateral Investment Treaty aimed "to extend and intensify the economic relations between them and to stimulate the flow of capital and technology and the economic development of the Contracting Parties". But signing the treaty was in fact mainly a symbolic act which since then has had little if any effect in this respect. In fact, a report by the Netherlands Bureau for Economic Policy Analysis found that BITs have no positive effect on investment in low and lower middle income countries located in Latin America and Sub-Saharan Africa, including Tanzania.
