Protecting Foreign Direct Investment While Ensuring The Protection Of Labour: A Critical Appraisal Of Ethiopian Bilateral Investment Treaties

Abstract

By admitting important role of FDI in financing economic development of host states, capital importing countries have signed bilateral investment treaties in order to attract FDI. Like other countries Ethiopia have signed several BITs which incorporated investor protection provisions in detail, broadly formulated and vague, enforceable through ISDS and imposed obligations only on host state, but silent regarding investor obligations and home state. Moreover, traditional approach of bilateral investment treaties (BITs) has not sufficiently included public interests including labour matters. Currently, countries have started to take measures in order respond for challenges arise from traditional approach of bilateral investment treaties (BITs). Ethiopia’s BITs have not adequately addressed labour matters. This research seeks to assess sufficiency and enforceability of labour provisions in Ethiopia’s BITs in ensuring the protections of labour rights. The researcher employed doctrinal type of legal research .In this method different Model of investment treaties like Canada Model BIT, Norway Model BIT, Netherland and Belgium Model treaty in relation to ensuring labour rights in investment treaties have been reviewed. Assessment of Ethiopia’s BITs concerns Both ratified and unratified. The study conclusions shows that majority of Ethiopia’s BITs have not included labour matters. Those BITs that have included labour provisions are lacks enforceability. Provisions concerning general and specific obligations of investors have missed in most Ethiopia’s BITs. Some standards of protection like FET and Indirect expropriations are risk full for ensuring labour protection. It is important for Ethiopia to reconsider labour provisions that have already incorporated; there are no mechanisms available for civil society particularly labour union to engage in monitoring, enforcement labour provisions in BITs. Moreover, the involvement of civil society and social partners are minimal