Both ENDS
In March the Indonesian government announced that it will terminate the Bilateral Investment Treaty (BIT) with the Netherlands as of July 1st, 2015 (for more information, see the press release of 24 March at the bottom of this post). Several organizations, including Both ENDS, have been raising questions about these controversial international trade agreements for a long time and think they should be drastically revised or even terminated. The Socialist Party and GreenLeft have asked parliamentary questions about the effects of these treaties following Indonesia’s decision. Both ENDS is curious about the answers to these parliamentary questions and about the consequences they will have for Dutch policy in this area.
“Quite shocking”, said Anouk Franck from Both ENDS. “The International Finance Corporation is unaware of the social and environmental consequences of their investments in private enterprises in developing countries and emerging economies. This was observed by the Ombudsman of the IFC itself.”
More than 100 international experts and social activists gathered from 5-8 November in Brussels, Belgium, for a 'Week of Action' to call attention to the negative effects of International Investment Treaties (IIA) on human rights and the environment.
On 28 February 2011, a letter signed by 120 NGOs was sent to the members of the Committee on International Trade. With this letter, the undersigned organizations call upon the European Parliament to support a more balanced investment policy.
The European Commission is about to take important decisions about Bilateral Investment Treaties (BITs). These agreements are designed to protect corporations that invest in a foreign (often developing) country. These international agreements are binding, but often undermine the social and environmental regulations that developing countries want to implement. On march 3, the European Parliament will vote on reforming these policies.
The World Bank has agreed to suspend all new investments in the palm oil industry by the International Finance Corporation (IFC) - an independent body within the World Bank focused on the private sector - with immediate effect. In a letter to Both ENDS' partner Forest Peoples Programme, Robert Zoellick, President of the World Bank, writes that all existing investments will be re-examined, pending a number of guarantees that must limit damage to humans and the environment.
Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. 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’ clauses that are included in many such treaties.
International trade agreements often have far-reaching consequences not only for the economy of a country, but also for people and the environment. It is primarily the most vulnerable groups who suffer most from these agreements.
