The “Open-Ended Intergovernmental Working Group on Transnational Corporations and Other Business Enterprises with Respect To Human Rights” convened in Geneva this week for its ninth session of negotiations on Legally Binding Instrument on Business and Human Rights. The Legally Binding Instrument, also known as the “UN Treaty on Business and Human Rights,” is in its fourth draft, as released on July 31st this year.
For years, the business community has been concerned about onerous requirements on business, liability risks and legal uncertainty the draft Treaty would create both for States and companies, and these challenges continue to persist based on the fourth draft. It also promotes extraterritorial jurisdiction and includes broad definitions, causing further questions about its viability and implementation feasibility.
“USCIB is firmly committed to respecting human rights and advancing responsible business conduct globally,” said Ewa Staworzynska, USCIB director of corporate responsibility and labor affairs, who represented USCIB during the negotiations. “This draft Treaty, in its current form, would create a severe level of legal uncertainty for governments and for business, and it would contribute to divestments and market exits, especially in developing countries. Unfortunately, the current draft Treaty takes us away from the well-respected UN Guiding Principles for Business and Human Rights.”
The negotiations progressed slowly, only covering three out of 24 articles with vast disagreements on what the scope of the Treaty should be. The governments ultimately adopted the session report, by consensus, and thus agreed to present a procedural decision to the Human Rights Council in 2024 to request additional resources for the process. In addition, intersessional consultations will be held, together with legal experts, ahead of the 10th negotiation next year.
