The «race to the bottom» and its regulation in bilateral investment treaties
DOI:
https://doi.org/10.17308/law/1995-5502/2023/4/297-306Keywords:
international investment law, “race to the bottom”, labor and environmental rights, bilateral investment treatyAbstract
The article gives a definition of the “race to the bottom” in international investment law and examines traditional and alternative ways to overcome the “race to the bottom”, whereby states tend to attract foreign investment by reducing the protection of labor and environmental rights aiming to reduce the production costs of foreign enterprises. The traditional way of overcoming is the “non-regression clause”, prohibiting the lowering of labor and environmental standards in force at the time of the treaty conclusion. The author explores the possibility of alternative ways to combat the “race to the bottom”, in particular, clearly defined impact assessment standards, as well as performance requirements.
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