International Legal Reasons for Countries to Address Environmental and Social Impacts of Trade and Investment Agreements

Abstract

This chapter considers whether States are legally bound to address the sustainability impacts of trade and investment liberalization—at least to prevent harm, and potentially also to actually integrate environmental and social development considerations in order to strengthen and enhance the contribution of increased trade and investment flows towards achieving countries’ Sustainable Development Goals (SDGs). To this end, it considers scholarly literature on the legal status of States’ commitments to sustainable development. It also discusses customary and interstitial norms, and whether international law requires States to integrate significant environmental and social considerations into economic development plans, including into the negotiations of new trade and investment agreements, noting the relevance of the maxim pacta sunct servanda. In particular, the chapter considers the relevance of the customary principle of integration to trade and investment policy, and how this principle might influence the interpretation of trade and investment agreements.