Investor Presentaiton

137 Interaction between different sources of international law. A separate issue that may arise is the interaction between obligations under international treaties covering different areas of international law. A case in point is the possible role in ISDS cases of EU law, WTO law, and international conventions on the environment, climate change, public health or human rights. IIAs usually provide that more favourable treatment of investors granted under another international treaty (such as a multilateral treaty to which both IIA signatories are parties, e.g. the GATS Agreement) would take precedence. It is much less usual to address a relationship between an IIA and a treaty that governs a different policy area (e.g., protection of the environment, human rights, etc.). Cases of outright conflict have been rare, but may become more common in the future. For example, a measure taken by a State to implement its obligations under an environmental protection treaty might have an adverse effect on a foreign investor. Whether that adverse effect rises to a breach of an investment obligation might be assessed in light of the State's other obligations. Article 31(3)(c) of the Vienna Convention gives some direction regarding the appropriate method to interpret an IIA provision against the backdrop of other treaties. It directs the interpreting body to consider, in addition to the context of the provision, "any relevant rules of international law applicable in the relations between the parties". 157 Further, where investment provisions are located in a chapter which forms part of a broader economic treaty such as an FTA, they may come into conflict with other provisions in the same treaty, for example those contained in the chapter regulating trade in services (the latter applies inter alia to investment in services). Certain treaties have attempted to prevent internal conflict by specifying which treaty provisions have precedence. NAFTA, for example, 157 See, e.g. McLachlan, 2005; Kriebaum, 2007. UNCTAD Series on International Investment Agreements II

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