ArticlePDF Available

Protecting Policy Space for Public Health Nutrition in an Era of International Investment Agreements

Authors:

Abstract

Philip Morris has recently brought claims against Australia (2011) and Uruguay (2010) under international investment agreements (IIAs). The claims allege that Philip Morris is entitled to compensation following the introduction of innovative tobacco packaging regulations to reduce smoking and prevent noncommunicable diseases (NCDs). Since tobacco control measures are often viewed as a model for public health nutrition measures, the claims raise the question of how investment law governs the latter. This paper begins to answer this question and to explain how governments can proactively protect policy space for public health nutrition in an era of expanding IIAs. The authors first consider the main interventions proposed to reduce diet-related NCDs and their intersection with investment in the food supply chain. They then review the nature of investment regimes and relevant case law and examine ways to maximize policy space for public health nutrition intervention within this legal context. As foreign investment increases across the food-chain and more global recommendations discouraging the consumption of unhealthful products are issued, investment law will increase in importance as part of the legal architecture governing the food supply. The implications of investment law for public health nutrition measures depend on various factors: the measures themselves, the terms of the applicable agreements, the conditions surrounding the foreign investment and the policies governing agricultural support. This analysis suggests that governments should adopt proactive measures - e.g. the clarification of terms and reliance on exceptions - to manage investment and protect their regulatory autonomy with respect to public health nutrition.
Bull World Health Organ 2014;92:139–145 | doi: http://dx.doi.org/10.2471/BLT.13.120543
Policy & practice
139
Protecting policy space for public health nutrition in an era of
international investment agreements
Anne Marie Thowa & Benn McGradyb
Introduction
In 2010, the tobacco multinational Philip Morris brought a
claim against Uruguay under an international investment
agreement (IIA) between that country and Switzerland. e
following year, the company brought a claim against Australia
under an IIA between that country and Hong Kong Special Ad-
ministrative Region in China. ese claims challenge tobacco
packaging and labelling policies on several grounds, among
them that large graphic health warnings and so-called “plain
packaging” are arbitrary and unreasonable measures, expropri-
ate trademarks and undermine good will indirectly.1,2 Chal-
lenges to public health policies are relatively rare under IIAs.
However, Philip Morris’ claims illustrate how the autonomy of
states to engage in product regulation to protect and promote
public health – outside the sphere of tobacco control – can
be challenged in the context of an IIA. is paper addresses
important questions about domestic regulatory autonomy
and explores the implications of investment law for public
health nutrition policies designed to prevent diet-related
noncommunicable diseases (NCDs) and curb their enormous
social and economic costs.3 It highlights the neglected role of
public health policy-makers in national decisions pertaining
to investment and investor protection and examines ways to
protect policy space for public health nutrition.
Foreign direct investment and nutrition regulation
As the global epidemic of diet-related NCDs has escalated, it
has become increasingly clear that healthy eating initiatives
based on public education need to be supported by policies
to improve the food environment.3,4 e current “obesogenic”
environment, in which unhealthful foods are heavily marketed,
easily available and oen the cheapest options, makes it dif-
cult for consumers to make healthy choices in response to
information and education. A growing global consensus is
forming around the need for governments to implement pub-
lic health nutrition regulation in the form of food taxes and
subsidies, informative product labelling, marketing restric-
tions and urban planning initiatives targeting processed and
pre-prepared (e.g. “fast”) foods high in salt, sugar, saturated
fats and trans fats.37
e above-mentioned interventions apply to the end
products of complex food supply chains, any stage of which
is usually open to investment by international companies
(Fig. 1). Foreign direct investment (FDI) in the entire food
supply chain has increased rapidly during the past 20 years.
Between 1990 and 2009, FDI in the food, beverage and tobacco
sectors of developed countries increased 11-fold; investment
in these sectors in developing economies increased fourfold8
and is projected to continue to rise.9
FDI in the food sector has occurred primarily in the
processed food and beverage industries and in retail outlets,
such as supermarkets and convenience food stores, selling
products associated with the nutrition transition – i.e. products
low in cereal and bre and high in sugars, salt and saturated
and trans fats.10,11 ese foods are the main targets of global
recommendations to reduce consumption. Seven of the top 100
transnational corporations – with combined foreign sales in
excess of 400 billion United States dollars (US$) in 2010 – are
involved in the production and retail sale of processed foods.12
e beverage sector accounts for most of the food-related
FDI originating in the United States of America13 and the
processed food industry is one of the top 10 sectors attracting
FDI in India.14 Of the world’s top 15 franchises, seven have
strong interests in highly processed and “fast” foods.12 In 2011
the combined sales of the top global food service outlets was
Abstract Philip Morris has recently brought claims against Australia (2011) and Uruguay (2010) under international investment agreements
(IIAs). The claims allege that Philip Morris is entitled to compensation following the introduction of innovative tobacco packaging regulations
to reduce smoking and prevent noncommunicable diseases (NCDs). Since tobacco control measures are often viewed as a model for
public health nutrition measures, the claims raise the question of how investment law governs the latter. This paper begins to answer
this question and to explain how governments can proactively protect policy space for public health nutrition in an era of expanding
IIAs. The authors first consider the main interventions proposed to reduce diet-related NCDs and their intersection with investment in the
food supply chain. They then review the nature of investment regimes and relevant case law and examine ways to maximize policy space
for public health nutrition intervention within this legal context. As foreign investment increases across the food-chain and more global
recommendations discouraging the consumption of unhealthful products are issued, investment law will increase in importance as part
of the legal architecture governing the food supply. The implications of investment law for public health nutrition measures depend on
various factors: the measures themselves, the terms of the applicable agreements, the conditions surrounding the foreign investment and
the policies governing agricultural support. This analysis suggests that governments should adopt proactive measures – e.g. the clarification
of terms and reliance on exceptions – to manage investment and protect their regulatory autonomy with respect to public health nutrition.
a Menzies Centre for Health Policy, Victor Coppleson Building, University of Sydney, Sydney, NSW 2006, Australia.
b O’Neill Institute for National and Global Health Law, Georgetown University Law Center, Washington, United States of America.
Correspondence to Anne Marie Thow (e-mail: annemarie.thow@sydney.edu.au).
(Submitted: 6 March 2013 – Revised version received: 13 August 2013 – Accepted: 27 August 2013 – Published online: 4 October 2013 )
Policy & practice
Bull World Health Organ 2014;92:139–145 | doi: http://dx.doi.org/10.2471/BLT.13.120543
140
Policy & practice
Policy space for public health nutrition Anne Marie Thow & Benn McGrady
around US$ 230 billion dollars.15 us,
the key targets of public health nutrition
interventions are the objects of extensive
– and growing – investment activity.
Concerns have also been raised
that the substantial recent growth in
FDI in agriculture, with direct foreign
ownership of agricultural land be-
ing a common feature,16 could limit
government inuence over the modes
of production of healthful foods.17,18
Investment in agricultural land is now
high. In 2011, the High Level Panel of
Experts on Food Security and Nutrition
reported that international investors had
leased or purchased an estimated 50 to
80 million hectares of land in middle-
and low-income countries, about two
thirds of them in sub-Saharan Africa.16
Global inward FDI in the agriculture
and hunting sectors totalled US$ 3425.9
million in 2010, a drop from a high of
US$ 6379.4 million in 2008 – during the
global food crisis and before the global
economic crisis.19
In some cases a single company in-
vests at multiple points in the food sup-
ply chain. In Brazil, for example, Coca-
Cola has invested in the renement of
cane sugar, the production of beverage
concentrates, the bottling of sugar-
sweetened beverages and refrigeration.
In Ecuador, the company has invested
in the bottling of sugar-sweetened bev-
erages and in advertising companies.19
is type of vertical investment in the
food supply creates eciencies from an
economic point of view but it also gives
a company greater power within a coun-
try’s food supply. It thus increases both
the cumulative eect of policy interven-
tions on a given investor’s interests and
the investor’s motivation and capacity to
contest regulation.
Investor protection and public
health nutrition policy
Governments actively encourage and
compete for FDI, mainly for economic
and political reasons. FDI can create
employment and thus contribute to
human capital development in the host
country. It can also facilitate technology
transfer, promote competition in the
domestic input market and contribute
to the host country’s corporate tax rev-
enues.2022 Governments oer a range of
incentives to attract FDI, including tax
holidays, land grants and other forms of
subsidies, and legal protections beyond
those oered to domestic investors.
e opening of the market in Myan-
mar provides a contemporary example
of benets oered to foreign investors
that are likely to have direct eects on
consumption patterns and may reduce
public health policy space. In 2012, a
new foreign investment law came into
force. It set out several types of tax
incentives available to foreign inves-
tors: (i) ve-year income tax holidays;
(ii) accelerated depreciation for capital
assets; (iii) exemptions from duty on
machinery and production inputs;
and (iv) income tax exemptions for
prots reinvested in Myanmar.23 ese
incentives lower production costs for
investors such as Coca-Cola, which
recently announced its plans to invest
directly in Myanmar and begin bottling
in the country to target the domestic
market.24 If the lower costs of produc-
tion are passed on to consumers in the
form of lower prices, the demand for
Coca-Cola products in Myanmar will
probably increase under the law of sup-
ply and demand.
Governments encourage invest-
ment in the food sector not just in
competing for FDI, but also to improve
food security, since FDI is perceived as
conducive to improved food production
and processing technologies and more ef-
cient and reliable food supply chains.17
Governments promote investment in
agricultural production through various
types of subsidies. As is true of other
incentives to attract FDI, such subsidies
and other measures to promote food
security can lower the cost of producing
the products that are of greatest concern
in a public health nutrition context. e
subsidization of corn production in the
United States provides a classic example.
Production subsidies were originally
justied partly on food security grounds,
but today a substantial proportion of this
subsidized corn production goes into
making high fructose corn syrup25 and
other caloric sweeteners, which makes
calories cheaper for a population that
already consumes them in excess.
Proposed public health nutrition
measures are intended to reduce the
consumption of end products that are
high in fat, salt and sugar. Insofar as
they reduce product sales and limit
retail expansion, they can be perceived
as potentially undermining the value
of investments at any point in the food
supply chain. e result is an implicit
tension between government action to
promote food security and economic
growth by encouraging investment,
and government action to reduce the
consumption of highly processed foods
to prevent diet-related NCDs. Although
these tensions are not new, they are
likely to increase in light of the World
Health Assembly’s recent endorsement
of the global action plan for the preven-
tion and control of NCDs 2013–2020,
which species the need to use policy
measures, including scal policies, to
discourage the consumption of less
healthful options”. ese tensions will
be compounded by growing FDI in the
processed and “fast” food industry. e
recent claims brought by Philip Mor-
ris against Australia and Uruguay also
highlight the legal risks associated with
public health regulation. Investments
such as the ones made by Coca-Cola in
Myanmar also highlight the need for the
public health community to play a more
active role in policy-making regarding
investment.
Legal instruments governing
investment
Various legal instruments provide
protection for foreign investors. ey
include domestic laws governing FDI
or property rights more generally; con-
tracts and other legally binding agree-
ments between a foreign investor and
a government; and IIAs. Importantly,
how a government incentivizes invest-
ment can have legal implications for
subsequent regulation. In other words,
a government runs the risk of tying its
own hands with respect to public health
nutrition regulation in the process of
seeking to attract investment. is risk is
Fig. 1. A simplified food supply
chain, showing key points for
investment
Inputs into production
(e.g. fertilizer)
Primary production
(e.g. agriculture)
Primary processing
(e.g. milling and preservation)
Secondary processing
(e.g. manufacture of highly processed foods)
Food retailing and food service
(e.g. supermarkets or fast food chains)
Bull World Health Organ 2014;92:139–145 | doi: http://dx.doi.org/10.2471/BLT.13.120543 141
Policy & practice
Policy space for public health nutrition
Anne Marie Thow & Benn McGrady
most evident in the context of contracts
and IIAs.
Contracts between a government
and a foreign investor are oen seen in
cases in which an investor purchases
state-owned assets or in which a govern-
ment has oered inducements to invest-
ment. Contracts are also commonly
used to limit the regulatory changes that
can aect an investment through what
is known as a stabilization clause. For
example, when the Laotian Government
sold its national tobacco monopoly to a
foreign investor, the government agreed
to x the excise tax on tobacco products
for a period of 25 years.26 Large sporting
events provide another example of how
state contracts can limit governments’
regulatory power. Companies such as
Coca-Cola and McDonalds sponsor
the International Olympic Commit-
tee (IOC), so when the Committee
contracts with Olympic host cities, it
makes certain that the companies in
question are allowed to advertise dur-
ing the games.27 Similar contracts have
been problematic in the context of For-
mula One racing; the tobacco industry
sponsors the sporting body, which
then contracts with governments that
are either contemplating restrictions
on tobacco advertising or already have
them in place.
Like contracts, IIAs grant foreign
investors, including large multination-
als, legal rights above and beyond those
of domestic investors. IIAs are usually
bilateral agreements that protect the as-
sets of nationals of one contracting party
while such assets are invested in the
territory of the other contracting party.
e bilateral investment treaty between
Australia and Hong Kong Special Ad-
ministrative Region (China) constitutes
an agreement of this type. Philip Morris
(Asia) alleges that, under such a treaty,
its ownership of the Australian subsid-
iary Philip Morris Limited provides
the legal basis for a claim in response
to Australian tobacco packaging laws.
Foreign investors are able to bring claims
directly under the dispute settlement
mechanisms of IIAs, which means that
disputes are resolved at the international
level rather than in domestic courts or in
accordance with domestic law.
Typically, IIAs protect investors
from expropriation. ese agreements
oblige the contracting parties to pay
compensation for expropriation of an
investment (e.g. direct taking of title or
seizure) or for other measures having
an equivalent eect (e.g. destroying the
economic value of an investment or
keeping the owner from being able to
manage, use or control the property in
a meaningful way).28 Usually IIAs also
provide a guarantee of fair and equitable
treatment and of protection against dis-
crimination based on the origin of the
investor or investment.
Relatively few claims in connec-
tion with the food-chain have been
led under IIAs. Disputes involving
the food industry have had to do with
import restrictions on beef to prevent
the spread of bovine spongiform en-
cephalopathy (“mad cow disease”);29
prohibitions against the use of certain
pesticides to protect human health;30 the
redistribution of private farm lands;31,32
modications to agricultural subsidy
regimes;33 and a discriminatory tax on
high fructose corn syrup – but not on
other sweeteners – imposed to protect
Mexicos cane sugar industry from un-
fair competition.34 A search of Invest-
ment Claims35 – Oxford University’s
suite of investment arbitration disputes
– using the keywords food, nutrition and
agriculture revealed no publicly reported
challenges to public health nutrition
measures under IIAs. is should not
be taken to mean, however, that IIAs are
irrelevant when it comes to public health
nutrition. A more likely explanation for
the absence of claims is that regulation
in the interest of public health nutrition
is a relatively new area of activity.
IIAs protect the legitimate ex-
pectations of investors when these
expectations were induced by the host
state and served as the basis for the
investment. Investors have no right to
expect the regulatory environment to
remain unchanged, but if a host state
induces investment, such an action
may later aect the application of provi-
sions governing expropriation and fair
and equitable treatment. For example,
legitimate expectations may come into
play when a host state has provided
incentives for upstream investment in
the food-chain but also downstream
measures to regulate the products of
that investment. Another example is
that of a host state that has negotiated a
form of self-regulation with an investor
but that has subsequently shied to a
stricter regulatory approach. e great-
est legal risk occurs in cases in which
states assure investors that they will be
exempted from certain types of regula-
tions or taxes.
ese examples are not intended
to suggest that public health nutrition
measures ordinarily violate IIAs. ey
show, instead, that although IIAs are
usually interpreted in a manner that
favours state autonomy in implementing
measures to protect health, some actions
to induce investment can tie the hands
of regulators by exposing a country to
the risk of legal liability. In essence, the
legal implications of regulation must be
judged on a case-by-case basis.
Preserving policy space
Growing FDI in the food and bever-
age sectors, an increased recognition
of the need for public health nutrition
regulation and more frequent recourse
to litigation by foreign investors make it
essential that the public health commu-
nity be engaged in matters concerning
investment policy. It is important for
policy-makers, particularly in countries
in the early stages of the nutrition transi-
tion, to ensure that FDI is managed in a
way that minimizes the health risks po-
tentially arising from lowered produc-
tion costs. Risk management should take
place within the framework of existing
IIAs and governments must avoid enter-
ing into future investment agreements
that overly constrain their regulatory
autonomy with respect to public health
nutrition. e goal should be to strike
a balance between allowing host states
sucient autonomy to engage in public
health nutrition regulation and incen-
tivizing investment in the food-chain.
In addition, transparency and predict-
ability – both in terms of the regulatory
environment and of the rules governing
public health nutrition measures – are
valuable and should be pursued.
Managing foreign investment
In the case of new investments, policy-
makers need to evaluate whether grant-
ing incentives that may lower produc-
tion costs, will jeopardize public health
by making unhealthful products more
aordable. ey also need to ensure
that investment contracts that facilitate
incoming investment do not tie the
hands of regulators in ways likely to un-
dermine health, as in the example of the
tobacco monopoly in the Lao People’s
Democratic Republic.
An important aspect of managing
risk under existing and future IIAs is
the importance of clarifying and man-
aging the “legitimate expectations” held
by a foreign investor. One overarching
Bull World Health Organ 2014;92:139–145 | doi: http://dx.doi.org/10.2471/BLT.13.120543
142
Policy & practice
Policy space for public health nutrition Anne Marie Thow & Benn McGrady


        
  2010  2011 
    IIAs  





      
    






     
       
     








摘要
国际投资协定时代保护公共卫生营养政策的空间
菲利普莫里斯公司最近已根据国际投资协定(IIA)向
澳大利亚(2011 年)和乌拉圭(2010 年)提出索赔。
索赔宣称,菲利普莫里斯公司有权在引入旨在减少
吸烟和预防非传染性疾病NCD)的创新烟草包装
法规以后获得补偿。因为烟草控制措施通常被视为公
共卫生营养措施的典范,该索赔引起投资法律如何控
制后者的问题。本文试图回答这个问题,并解释政府
IIA 扩张时代如何积极主动保护公共卫生营养的政
策空间。作者首先考虑所提出的旨在减少饮食相关非
传染性疾病的主要干预措施,及其与食品供应链投资
approach is to develop national policy
statements on public health nutrition
measures clarifying in advance that a
foreign investor cannot legitimately
expect the host country to not issue
public health nutrition measures. To
complement this approach, host states
could clarify the legitimate expectations
of an investor at specic points – for
example, when entering into invest-
ment contracts (e.g. for the farming of
land), when creating or implementing
schemes incentivizing investment in
the food-chain, and when engaging in
partnerships with investors, such as in
the context of self-regulation.
Protecting regulatory autonomy
It is important that policy-makers
protect their policy space in future
IIAs. In contemporary treaty practice,
states have adopted several approaches
to address the scope of their powers to
regulate in the public interest. ese
approaches include: general exceptions;
language clarifying the meaning of
indirect expropriation and of fair and
equitable treatment; clauses carving out
specic areas of investment; and clauses
permitting contracting parties to refuse
to establish investments on specied
grounds.36 Some states have also taken
more assertive steps. For example, the
Gillard government in Australia de-
clared that it would not seek agreements
having investor–state dispute settlement
provisions.37
e use of clarifying terms and
general exceptions is as relevant to
public health nutrition measures as it
is to other measures to protect public
health. Contrary to what happens in
the tobacco sector, however, clauses that
simply “carve out” investment in the
food-chain (a form of exclusion) from
IIAs might not strike a proper balance
– depending on the other incentives and
protections in place – between the need
to incentivize investment and the need
to ensure policy space. is highlights
the complexity of the policy environ-
ment and suggests the need for a more
detailed examination of the role of IIAs
in the public health nutrition context.
Conclusion
Tension exists between an investment
regime that promotes investment in
the food-chain and the goals of public
health nutrition measures. Incentives to
investment can lower production costs
and make unhealthful products more
aordable; investment contracts can tie
the hands of health regulators; and IIAs
can limit a host government’s regula-
tory autonomy, particularly when it has
induced a foreign investor to invest. In a
context of growing government concern
over NCDs, increasing foreign invest-
ment in the food and beverage sector,
and greater reliance on investment law
to protect the interests of investors,
health policy-makers should play a more
active role in shaping investment policy.
Our analysis highlights the need
for additional research on the intersec-
tion of investment and public health
nutrition policy, especially descriptive
studies on how states are balancing the
interests discussed in this paper and
how dierent policies aect investment
and public health nutrition regulation.
ere is also a need for legal studies on
the implications of dierent legal instru-
ments and the most appropriate legal
approaches to implementing dierent
policy options.
Competing interests: None declared.
Bull World Health Organ 2014;92:139–145 | doi: http://dx.doi.org/10.2471/BLT.13.120543 143
Policy & practice
Policy space for public health nutrition
Anne Marie Thow & Benn McGrady
的交集。然后审查投资制度的本质及相关案例法,并
调查在这种法律环境中最大化公共卫生营养干预的政
策空间的各种方法。随着整条食品生产链上外资的增
加以及人们提出更多不鼓励不健康产品消费的全球建
议,作为控制食品供应的法律体系的组成部分,投资
法律在这方面的重要性也将提高。投资法律对于公共
卫生营养措施的含义取决于多种因素 措施本身、适
用协定的条款、外资所处的环境以及主导农业扶持的
政策。这一分析表明,政府应该采取积极的措施(例
如澄清条款和依靠例外)以管理投资并保护其在公共
健康营养方面的法规自主权。
Résumé
Protéger l’espace politique en matière de nutrition en santé publique dans l’ère des accords internationaux d’investissement
Philip Morris a récemment intenté une action en justice contre
l’Australie (2011) et l’Uruguay (2010) en vertu des accords internationaux
d’investissement (AII). Les plaintes allèguent que Philip Morris a droit
à une indemnisation suite à l’introduction de la réglementation
innovante sur les emballages de tabac pour réduire le tabagisme et
prévenir les maladies non transmissibles (MNT). Comme les mesures
de lutte contre le tabac sont souvent considérées comme un modèle
pour les mesures de nutrition en santé publique, ces revendications
soulèvent la question de savoir comment le droit sur les investissements
régit ces dernières. Cet article tente de répondre à cette question
et d’expliquer comment les gouvernements peuvent protéger de
manière proactive l’espace politique en matière de nutrition en santé
publique à l’ère de l’expansion des AII. Les auteurs considèrent d’abord
les principales interventions proposées pour réduire les MNT liées à
l’alimentation et leur intersection avec les investissements dans la chaîne
d’approvisionnement des aliments. Ils passent ensuite en revue la nature
des régimes d’investissement et de la jurisprudence pertinente, et ils
examinent les moyens de maximiser l’espace politique pour intervenir
en matière de nutrition en santé publique dans ce contexte juridique.
Avec l’augmentation des investissements étrangers dans l’ensemble
de la chaîne alimentaire et le nombre croissant de recommandations
mondiales qui sont publiées et qui découragent la consommation de
produits nocifs pour la santé, le droit sur les investissements va gagner en
importance au sein de la structure juridique qui régit l’approvisionnement
des aliments. Les implications du droit sur les investissements pour les
mesures de nutrition en santé publique dépendent de divers facteurs: les
mesures elles-mêmes, les termes des accords en vigueur, les conditions
concernant les investissements étrangers et les politiques de soutien à
l’agriculture. Cette analyse suggère que les gouvernements devraient
adopter des mesures proactives – c.-à-d. la clarification des termes et
le recours aux exceptions – pour gérer les investissements et protéger
leur autonomie réglementaire dans le domaine de la nutrition en santé
publique.
Резюме
Защита пространства стратегий развития здорового общественного питания в эпоху международных
инвестиционных соглашений
Некоторое время назад корпорация Philip Morris возбудила
иски против Австралии (2011 г.) и Уругвая (2010 г.) в связи с
международными инвестиционными соглашениями. В исках
заявлялось, что Philip Morris имеет право на компенсацию в связи
с введением новых предписаний по упаковке табачных изделий,
направленных на сокращение курения и предотвращение
неинфекционных заболеваний. Поскольку меры по борьбе с
потреблением табака часто рассматриваются как модель для мер,
направленных на развитие здорового общественного питания,
в исках был затронут вопрос о том, как эти меры регулируются
инвестиционным правом. Данный документ представляет собой
попытку дать ответ на этот вопрос и разъяснить, каким образом
правительства могут превентивно защищать свое пространство
стратегий развития здорового общественного питания в эпоху
роста международных инвестиционных соглашений. Сначала
авторы обсуждают основные мероприятия, которые предлагается
провести для сокращения неинфекционных заболеваний,
связанных с питанием, и то, как эти мероприятия пересекаются
со структурой инвестиций в систему поставок продуктов питания.
Затем они рассматривают природу инвестиционных политик и
соответствующую правоприменительную практику и оценивают
способы максимального расширения пространства стратегий и
мероприятий по развитию здорового общественного питания, с
учетом обозначенного юридического контекста. В связи с ростом
зарубежных инвестиций в систему поставок продуктов питания
и вынесением глобальных постановлений рекомендательного
характера, препятствующих потреблению вредных для здоровья
продуктов, будет возрастать важность инвестиционного права,
как части законодательной системы, регулирующей поставку
проуктов питания. Влияние инвестиционного права на меры,
предпринимаемые для развития здорового общественного
питания, зависит от различных факторов: самих мер, условий
соответствующих соглашений, обстоятельств, определяющих
характер зарубежных инвестиций, а также стратегий поддержки
сельского хозяйства. Этот анализ свидетельствует о том, что
правительствам следует принять превентивные меры, такие как
прояснение условий и определение исключений, для управления
инвестициями и защиты нормативно-правовой независимости в
вопросах, касающихся здорового общественного питания.
Resumen
La protección de un espacio político para la nutrición en la salud pública en la era de los acuerdos internacionales de
inversiones
Recientemente, Philip Morris ha presentado demandas contra Australia
(2011) y Uruguay (2010) en virtud de los acuerdos internacionales de
inversiones (AII), en las que alega tener derecho a una indemnización a
raíz de la introducción de las regulaciones innovadoras del empaquetado
Bull World Health Organ 2014;92:139–145 | doi: http://dx.doi.org/10.2471/BLT.13.120543
144
Policy & practice
Policy space for public health nutrition Anne Marie Thow & Benn McGrady
del tabaco para reducir el tabaquismo y prevenir las enfermedades no
transmisibles (ENT). Dado que las medidas para el control del tabaco
suelen considerarse un modelo para las medidas de nutrición de salud
pública, estas demandas plantean la cuestión sobre cómo la ley de
inversiones controla estas últimas. El presente artículo trata de responder
a esta pregunta y explicar cómo los gobiernos pueden proteger de forma
proactiva el espacio político en materia de nutrición de salud pública en
la era de la expansión de las inversiones internacionales. En primer lugar,
los autores consideran las intervenciones principales propuestas para
reducir las enfermedades no transmisibles relacionadas con la dieta y su
confluencia con la inversión en la cadena de suministro de alimentos. A
continuación, revisan la naturaleza de los regímenes de inversiones y de
la jurisprudencia pertinente, y examinan formas de maximizar el espacio
político para la intervención de la nutrición en la salud pública dentro de
este marco legal. Dado que las inversiones extranjeras aumentan en toda
la cadena alimentaria, junto con las recomendaciones internacionales
que desaconsejan el consumo de productos nocivos para la salud,
también cobrará más importancia la ley de inversiones como parte de la
arquitectura legal que rige el suministro de alimentos. Las consecuencias
que la ley de inversiones tendrá en las medidas de nutrición en la salud
pública dependerán de varios factores: las medidas en sí, los términos
de los convenios aplicables, las condiciones que rodean la inversión
extranjera y las políticas que rigen las ayudas a la agricultura. Este
análisis sugiere que los gobiernos deben adoptar medidas proactivas,
como dilucidar los términos y basarse en excepciones, para gestionar
las inversiones y proteger su autonomía reglamentaria con respecto a
la nutrición y la salud pública.
References
1. Notice of arbitration, Australia / Hong Kong Agreement for the Promotion and
Protection of Investments; investor: Philip Morris Asia Limited. Melbourne:
Arthur Allens Robinson; 2011. Available from: http://www.ag.gov.au/
Internationalrelations/InternationalLaw/Documents/Philip%20Morris%20
Asia%20Limited%20Notice%20of%20Arbitration%2021%20November%20
2011.pdf [accessed 1 October 2013].
2. Philip Morris Brands Sàrl, Philip Morris Products S.A. and Abal Hermanos S.A. v.
Oriental Republic of Uruguay, ICSID Case No. ARB/10/7 (formerly FTR Holding
SA, Philip Morris Products S.A. and Abal Hermanos S.A. v. Oriental Republic
of Uruguay). Victoria: Investment Treaty Arbitration; 2010. Available from:
http://www.italaw.com/cases/460 [accessed 1 October 2013].
3. A/66/L.1. Political declaration of the High-level Meeting of the General
Assembly on the Prevention and Control of Non-communicable Diseases.
In: Sixty-sixth Session of the United Nations General Assembly, 13
September 2011 to 28 December 2012 [Internet]. New York: UN; 2011.
Available from: http://www.paho.org/hq/index.php?option=com_content
&view=article&id=6075&Itemid=3805 [accessed 1 October 2013].
4. WHA66.10. Follow-up to the Political Declaration of the High-level
Meeting of the General Assembly on the Prevention and Control of
Non-communicable Diseases. In: Sixty-sixth World Health Assembly, 25
May 2013, Geneva, Switzerland, main documents [Internet]. Geneva:
World Health Organization; 2013. Available from: http://apps.who.int/
gb/e/e_wha66.html [accessed 1 October 2013].
5. Beaglehole R, Bonita R, Horton R, Adams C, Alleyne G, Asaria P et al.;
Lancet NCD Action Group; NCD Alliance. Priority actions for the non-
communicable disease crisis. Lancet 2011;377:1438–47. doi: http://dx.doi.
org/10.1016/S0140-6736(11)60393-0 PMID:21474174
6. Cecchini M, Sassi F, Lauer JA, Lee YY, Guajardo-Barron V, Chisholm D.
Tackling of unhealthy diets, physical inactivity, and obesity: health effects
and cost-effectiveness. Lancet 2010;376:1775–84. doi: http://dx.doi.
org/10.1016/S0140-6736(10)61514-0 PMID:21074255
7. Meiro-Lorenzo M, Villafana TL, Harrit MN. Effective responses to non-
communicable disease: embracing action beyond the health sector. Washington:
The World Bank; 2011 (Health, Nutrition and Population Discussion Paper).
8. UNCTAD STAT [Internet]. Foreign direct investment flows, 1970–2012. Geneva:
United Nations Conference on Trade and Development; 2013. Available
from: http://unctadstat.unctad.org/ReportFolders/reportFolders.aspx?sRF_
ActivePath=P,5,27&sRF_Expanded=,P,5,27 [accessed 1 October 2013].
9. The FDI report 2012: global greenfield investment trends. London: FDI
Intelligence; 2012. Available from: http://ftbsitessvr01.ft.com/forms/fDi/
report2012/files/The_fDi_Report_2012.pdf [accessed 1 October 2013].
10. Hawkes C. The role of foreign direct investment in the nutrition transition.
Public Health Nutr 2005;8:357–65. doi: http://dx.doi.org/10.1079/
PHN2004706 PMID:15975180
11. Glanz K, Bader MDM, Iyer S. Retail grocery store marketing strategies and
obesity: an integrative review. Am J Prev Med 2012;42:503–12. doi: http://
dx.doi.org/10.1016/j.amepre.2012.01.013 PMID:22516491
12. World investment report 2011: non-equity modes of international production
and development. Geneva: United Nations Conference on Trade and
Development; 2011.
13. United States Department of Agriculture [Internet]. Global food markets:
international trade policy 2005. Washington: USDA; 2008. Available from:
http://www.ers.usda.gov/Briefing/GlobalFoodMarkets/TradePolicy.htm
[accessed 1 October 2013].
14. Majumdar K. Foreign direct investment in Indian food processing industry.
Asian J Res Bus Econ Manag 2012;2:113–20.
15. Market Research.com [Internet]. A faster world: global performance
and opportunities in consumer foodservice. Rockville: Market
Research.com; 2012. Available from: http://www.marketresearch.com/
Euromonitor-International-v746/Faster-Global-Performance-Opportunities-
Consumer-7122583/ [accessed 1 October 2013].
16. The High Level Panel of Experts on Food Security and Nutrition. Land tenure
and international investments in agriculture. Rome: Committee on World
Food Security; 2011.
17. Mihalache-O’keef A, Li Q. Modernization vs. dependency revisited:
effects of foreign direct investment on food security in less developed
countries. Int Stud Q 2011;55:71–93. doi: http://dx.doi.org/10.1111/j.1468-
2478.2010.00636.x
18. Rama R, Wilkinson J. Foreign direct investment and agri-food value chains in
developing countries: a review of the main issues. Rome: United Nations Food
and Agriculture Organization; 2008.
19. International Trade Centre [Internet]. Investment map: for a better
identification of investment opportunities. Geneva: Market Analysis and
Research, International Trade Centre; 2013. Available from: http://legacy.
intracen.org/marketanalysis/InvestmentMap.aspx [accessed 1 October
2013].
20. Javorcik B. Does FDI bring good jobs to host countries? Washington: The World
Bank; 2012 (World Development Report Background Paper).
21. Fillat C, Woerz J. Good or bad? The influence of FDI on productivity growth:
an industry-level analysis. J Int Trade Econ Dev 2010;20:293-328.
22. Loungani P, Razin A. How beneficial is foreign direct investment for
developing countries? F & D 2001;38(2).
23. WFW.com [Internet]. Natural resources briefing, 5 August 2013. London:
Watson, Farley & Williams; 2013. Available from: http://www.wfw.com/
Publications/Publication1183/$File/WFW-MyanmarFDILaw.pdf [accessed 1
October 2013].
24. Moye J. Back in Myanmar: Coca-Cola opens bottling plant in rapidly
developing nation. Atlanta: The Coca-Cola Company; 2013. Available from:
http://www.coca-colacompany.com/stories/back-in-myanmar-coca-cola-
opens-bottling-plant-in-rapidly-developing-nation [accessed 1 October 2013].
25. United States Department of Agriculture [Internet]. High-fructose corn
syrup production and prices. Washington: USDA; 2012. Available from:
http://www.ers.usda.gov/topics/crops/sugar-sweeteners/background.
aspx#hfcs [accessed 1 October 2013].
26. Sarntisart I. Tax policies for tobacco industry in Lao PDR. Bangkok: Centre
for Development Policy Studies; 2008. Available from: http://seatca.org/
dmdocuments/Tax%20Policies%20for%20Tobacco%20Industry%20in%20
Lao%20PDR%20.pdf [accessed 1 October 2013].
27. IOC chief Jaques Rogge admits ‘question mark’ over McDonald’s and Coca-
Cola sponsoring Olympics. The Telegraph (London), 2012 9 July. Available
from: http://www.telegraph.co.uk/sport/olympics/news/9385751/
IOC-chief-Jacques-Rogge-admits-question-mark-over-McDonalds-and-
Coca-Cola-sponsoring-Olympics.html [accessed 1 October 2013].
28. Expropriation. New York & Geneva: United Nations Conference on Trade
and Development; 2012 (UNCTAD Series on Issues in International
Investment Agreements II). Available from: http://unctad.org/en/Docs/
unctaddiaeia2011d7_en.pdf [accessed 1 October 2013].
Bull World Health Organ 2014;92:139–145 | doi: http://dx.doi.org/10.2471/BLT.13.120543 145
Policy & practice
Policy space for public health nutrition
Anne Marie Thow & Benn McGrady
29. The Canadian Cattlemen for Fair Trade v. United States of America, UNCITRAL
(formerly Consolidated Canadian Claims v. United States of America). Victoria:
Investment Treaty Arbitration; 2008. Available from: http://arbitrationlaw.
com/library/canadian-cattlemen-fair-trade-v-united-states-uncitral-nafta-
award-jurisdiction [accessed 1 October 2013].
30. WorldCourts [Internet]. Ad Hoc NAFTA Arbitration under UNCITRAL Rules:
Chemtura Corporation (formerly Crompton Corporation) v. Government
of Canada. WorldCourts; 2013. Available from: http://www.worldcourts.
com/pca/eng/decisions/2010.08.02_Chemtura_v_Canada.pdf [accessed 1
October 2013].
31. Tradex Hellas S.A. v. Republic of Albania, ICSID Case No. ARB/94/2. Victoria:
Investment Treaty Arbitration; 1999. Available from: http://www.italaw.com/
cases/1110 [accessed 1 October 2013].
32. Bernardus Henricus Funnekotter and others v. Republic of Zimbabwe, ICSID
Case No. ARB/05/6. Victoria: Investment Treaty Arbitration; 2009. Available
from: http://www.italaw.com/cases/467 [accessed 1 October 2013].
33. EDF International SA and others v Argentine Republic (ICSID Case No
ARB/03/23). Victoria: Investment Treaty Arbitration; 2012. Available from:
http://italaw.com/sites/default/files/case-documents/ita1069.pdf [accessed
1 October 2013].
34. Archer Daniels Midland Company and Tate & Lyle Ingredients Americas, Inc. v.
The United Mexican States, ICSID Case No. ARB (AF)/04/5. Victoria: Investment
Treaty Arbitration; 2007. Available from: http://www.italaw.com/cases/91
[accessed 1 October 2013].
35. Investment Claims [Internet]. Oxford: Oxford University Press; 2013.
Available from: http://oxia.ouplaw.com/ [accessed 1 October 2013].
36. McGrady B. Confronting the tobacco epidemic in a new era of trade and
investment liberalization. Geneva: World Health Organization; 2012.
37. Gillard Government Trade Policy Statement: trading our way to more jobs and
prosperity. Canberra: Australian Government, Department of Foreign Affairs
and Trade; 2011. Available from: http://www.acci.asn.au/getattachment/
b9d3cfae-fc0c-4c2a-a3df-3f58228daf6d/Gillard-Government-Trade-Policy-
Statement.aspx [accessed 1 October 2013].
... Nutrition policy makers have the World Health Organization (WHO)'s "bestbuys" and best-practice recommendations to refer to, yet uptake has been too slow to address the rising global burden of malnutrition. Most countries have failed to halt the rise in prevalence of obesity and reduce premature mortality from dietary non-communicable diseases (NCDs) (Lin et al., 2020) An emerging body of research indicates that binding constraints on nutrition policy space arising from international trade and investment agreements (TIAs) may hamper governments' efforts to address the growing burden of diet-related NCDs through food environment regulation, thereby contributing to policy inertia (Koivusalo et al., 2009;Friel et al., 2013a,b;von Tigerstrom, 2013;Thow and McGrady, 2014;Thow et al., 2015Thow et al., , 2017aKelsey, 2016;Ruckert et al., 2017;Barlow et al., 2018;Schram et al., 2019;Milsom et al., 2020;Garton et al., 2021a). However, such constraints are difficult to study empirically, and therefore the scholarship on this issue is largely theoretical. ...
... Constraints on food environment policy space have already occurred (Larios, 2005;Thow et al., 2017a,b;Barlow et al., 2018), and studies suggest future risks to health and food environment policy space posed by emerging international trade agreements and investment treaties (McGrady and Jones, 2013;Friel et al., 2013a,b;von Tigerstrom, 2013;Thow and McGrady, 2014;Marquez, 2015;Thow et al., 2015;Hirono et al., 2016;Schram et al., 2018a,b). A few examples help to illustrate different types of policy space constriction in the context of food environment regulations. ...
... This added focus on private sector engagement in governance is in line with literature concerned with the new generation of regional and bilateral trade agreementsfrequently negotiated "behind closed doors"-assigning further power to industry actors through ISDS mechanisms and transparency provisions (Friel et al., 2013bThow and McGrady, 2014;Hawkes, 2015;Thow et al., 2015;Ruckert et al., 2017). An assessment of leaked Regional Comprehensive Economic Partnership (RCEP) chapters on services and investment exposed similar dangers, especially for the developing and least-developed countries involved (Kelsey, 2016). ...
Article
Full-text available
Addressing the global challenge of malnutrition in all its forms will require policy measures to improve food environments, yet progress has been patchy and often slow, particularly for regulatory measures. International trade and investment agreements (TIAs) may limit governments' “policy space” for public health regulation. Constraints have been particularly apparent for public health measures targeting unhealthy commodities, including ultra-processed foods. Challenges and disputes regarding food environment regulation under TIAs (even if successfully defended) can entail significant drain of human and financial resources, and political capital. Lack of awareness or understanding of the implication of TIAs on policy space for regulation can contribute to regulatory chill and policy inertia. Governments lacking capacity to interpret their “legally available” policy space may want to err on the side of caution when there is perceived risk of a formal dispute—even if such threats are unfounded. This paper draws on analysis of literature, trade and investment dispute documentation, and data from inter-disciplinary expert interviews (n = 22) to present a new conceptual framework for the potential impacts of TIAs on policy space for regulating food environments. The analysis that underpins the framework focusses on the key policy domains of fiscal policies, front-of-pack nutrition labeling, restrictions on marketing to children, nutrient limits, and product bans. Analysis indicates that regulatory context and stakeholder influence, policy design, and mechanisms associated with TIA rules and provisions intersect in ways contributing to policy space outcomes. This new framework can provide a basis for rapidly assessing policy coherence between TIAs and food environment regulations in these domains. It can also be used to identify areas where further legal analysis would strengthen the development and defense of regulatory proposals. The framework may be applied to nutrition regulation more broadly, given the common themes that emerged across the different domains due to common interests of stakeholders, notably the food industry. It thus provides a basis for analyzing the political economy of regulation to address the commercial determinants of health in relation to unhealthy food and beverages.
... However, as markets for harmful products saturate in high-income countries (HICs), investment into the alcohol, ultra-processed food (UPF) and, in some cases, tobacco sector is increasing in many LMICs, particularly in Asia [2,3]. This investment allows corporations engaged in the production, distribution and sale of UPF, alcohol and tobacco to reduce production costs, gain efficiencies in distribution, and sell their products at a low cost domestically [4]. Foreign direct investment (FDI) has consequently been associated with increased consumption of health-harmful products in a number of LMICs [5][6][7][8][9]. ...
... Privatization and liberalization of cross-border capital flows are key elements of neoliberal policy reform [35]. While the relationship between neoliberal reforms and FDI into developing countries is complex, private foreign investment is often, although not always, considered by governments to be a fundamental source of employment, production (and specifically for food, more efficient and reliable supply chains [4]), technology transfer, tax revenue [4,13] and economic growth. As such, attracting FDI has been identified as a key pillar of the economic development plan in many LMICs, including investment into the processed food, alcohol and, in some cases, tobacco sectors [4]. ...
... Privatization and liberalization of cross-border capital flows are key elements of neoliberal policy reform [35]. While the relationship between neoliberal reforms and FDI into developing countries is complex, private foreign investment is often, although not always, considered by governments to be a fundamental source of employment, production (and specifically for food, more efficient and reliable supply chains [4]), technology transfer, tax revenue [4,13] and economic growth. As such, attracting FDI has been identified as a key pillar of the economic development plan in many LMICs, including investment into the processed food, alcohol and, in some cases, tobacco sectors [4]. ...
Article
Full-text available
Background Public health concerns relating to international investment liberalization have centred on the potential for investor-state dispute settlement (ISDS)-related regulatory chill. However, the broader political and economic dimensions that shape the relationship between the international investment regime and non-communicable disease (NCD) policy development have been less well explored. This review aimed to synthesise the available evidence using a political economy approach, to understand why, how and under what conditions transnational corporations may use the international investment regime to promote NCD prevention policy non-decisions. Main body Methods: Mechanisms explaining why/how the international investment regime may be used by transnational health-harmful commodity corporations (THCCs) to encourage NCD prevention policy non-decisions, including regulatory chill, were iteratively developed. Six databases and relevant grey literature was searched, and evidence was extracted, synthesized and mapped against the various proposed explanatory mechanisms. Findings: Eighty-nine sources were included. THCCs may be incentivised to use the ISDS mechanism since the costs may be outweighed by the benefits of even just delaying regulatory adoption, particularly since the chilling effect tends to ripple out across jurisdictions. Drivers of regulatory chill may include ambiguity in treaty terms, inconsistency in arbitral rulings, potential arbitrator bias and the high cost of arbitration. Evidence indicates ISDS can delay policy adoption both within the country directly involved but also in other jurisdictions. Additionally, governments are adopting standard assessments of public health regulatory proposals for trade and ISDS risk. Various economic, political and industry-related factors likely interact to increase (or decrease) the ultimate risk of regulatory chill. Some evidence indicates that THCCs take advantage of governments’ prioritization of foreign investment over NCD prevention objectives to influence the NCD prevention regulatory environment. Conclusions While ISDS-related regulatory chill is a real risk under certain conditions, international investment-related NCD prevention policy non-decisions driven by broader political economy dynamics may well be more widespread and impactful on NCD regulatory environments. There is therefore a clear need to expand the research agenda on investment liberalization and NCD policy beyond regulatory chill and engage with theories and approaches from international relations and political science, including political economy and power analyses.
... However, relatively few claims in connection to the food sector have been filed under investment agreements. Previous disputes included import restrictions (to prevent the spread of mad cow disease); prohibitions against the use of certain pesticides to protect human health; redistribution of private farmlands; and modification to agricultural subsidy regimes, among others (Thow and McGrady, 2014). ...
Article
Full-text available
The growing demand for food, water and energy, in conjunction with climate change, puts pressure on land and freshwater resources. This problem can be acute in developing countries, where many households and producers have inadequate access to these commodities. While development is primarily driven by national policies, outcomes are often also influenced by external factors, especially the policies of developed countries and emerging economies. This paper explores the possible effects of these factors on climate action and food and water security in developing countries. For instance, this study finds that subsidies for projects in the fossil fuel sector in developing countries, alongside international private finance, contradict climate mitigation commitments and may also negatively affect agriculture and water. Industrial and trade policies that promote imports of soybean and palm oil contribute to deforestation in producing regions and have knock-on effects on water and smallholder farmers. And policies encouraging investments in infrastructure, such as large-scale dams, while enabling economic growth, may also have adverse effects on water access for vulnerable communities. Solving the trade-offs associated with these policies and ensuring that they work in unison requires a better integration of policy interlinkages around the water-energy-food nexus in legislative and regulatory impact assessments, followed by a reorientation of financial flows. Yet, the foreign policies of developed countries and emerging economies also need to create an enabling environment for low-income, vulnerable countries by reducing their external footprints.
... For example, in Brazil, Coca-Cola has invested in the refinement of cane sugar, the production of beverage concentrates, as well as the bottling of sugar sweetened beverages and refrigeration. 43 Promotion: marketing and advertising Changes to tariff and non-tariff barriers to trade that are mandated by FTAs also have significant implications for food and beverage promotion . ...
... В своих усилиях по поддержке промышленных инноваций и привлечению инвестиций путем создания стабильных политических условий и осуществления инновационных мер политики, направленных на стимулирование производства и потребления здоровой пищи, государства сталкиваются с внутренним сопротивлением (Thow and McGrady, 2013). С точки зрения правозащитного подхода в число тех, кто наиболее серьезно страдает от несправедливых, неэффективных продовольственных систем и нездоровой продовольственной среды, входят потребители с низкими доходами, малоимущие группы сельского и городского населения, мелкие производители, фермеры, ведущие натуральное хозяйство, и коренные народы. ...
Article
The article emphasizes that Ukraine, as an active exporter of agri-food products and agricultural raw materials to the European market, needs to take into account the new EU approach to categorization of products based on their sustainability indicators. The European Commission will formulate a legislative proposal on the framework of a sustainable food system, and general requirements for sustainable foods, and their certification and labeling according to sustainability indicators by the end of 2023. Based on the presently available EU documents (first of all, the Farm to Fork Strategy) the author generalizes the main principles and requirements for sustainable foods that will become standard for all foods placed on the EU market in accordance with public interests. It is substantiated that the quite new for Ukraine concept of "sustainable agri-food product" has a broader content than the concept of "eco-friendly product" or "organic product", as environmental friendliness is just one of the characteristics of sustainability, along with the climatic and social ones. The main differences between sustainable and eco-friendly/organic products are systematized. A prominent place in the article is given to the climate criterion of sustainability, in particular, the reduction of greenhouse gas emissions in the production and supply of agricultural food (carbon footprint), which meets the target of decarbonization and achieving climate neutrality in Europe. In the context of creating a harmonized EU methodology for food sustainability, the author considers the content and components of the ecological footprint (land area used for production and utilization, water resources, carbon dioxide emissions, and food miles). The article provides global experience of voluntary certification of food sustainability, and national programs for certification of food sustainability, in particular soybeans in the USA and Canada, which testifies to the growing differentiation of the food market and a tendency towards official certification and labeling of sustainable foods. The author highlights the challenges for Ukrainian exports to the EU under the increasing requirements for the sustainability of agri-food products. In particular, high levels of greenhouse gas emissions from crops (corn and oilseeds) may lead to restrictions on their exports as raw materials for biofuel production. Tracking of chemical pesticide and antimicrobial residues in exported products is expected to be tightened, as the use of these hazardous substances in the EU should be reduced by 50% by 2030. The revealed asymmetry of the spread of the concept of "sustainable foods" between foreign (quite common) and domestic (almost absent) scientific and journalistic sources may indicate that domestic farmers might not be prepared for a timely reorientation to production and export to the EU of sustainable agri-food products. It is obvious that the better off countries will be those who manage to modernize their national agri-food systems in advance in the context of ensuring product sustainability.
... Scholarship in the past decade has raised concerns that trans-national companies (TNCs) and other opposed parties may use international trade and investment agreements (TIAs) as a means to contest the legitimacy of such regulations and restrict governments' 'policy space' for food environment (nutrition) interventions [13][14][15][16][17][18][19][20][21][22][23][24]. Policy space refers to "the freedom, scope, and mechanisms that governments have to choose, design, and implement public policies to fulfil their aims." ...
Article
Full-text available
Background Regulation of food environments is needed to address the global challenge of poor nutrition, yet policy inertia has been a problem. A common argument against regulation is potential conflict with binding commitments under international trade and investment agreements (TIAs). This study aimed to identify which actors and institutions, in different contexts, influence how TIAs are used to constrain policy space for improving food environments, and to describe their core beliefs, interests, resources and strategies, with the objective of informing strategic global action to preserve nutrition policy space. Methods We conducted a global stakeholder analysis applying the Advocacy Coalition Framework, based on existing academic literature and key informant interviews with international experts in trade and investment law and public health nutrition policy. Results We identified 12 types of actors who influence policy space in the food environment policy subsystem, relevant to TIAs. These actors hold various beliefs regarding the economic policy paradigm, the nature of obesity and dietary diseases as health problems, the role of government, and the role of industry in solving the health problem. We identified two primary competing coalitions: 1) a ‘public health nutrition’ coalition, which is overall supportive of and actively working to enact comprehensive food environment regulation; and 2) an ‘industry and economic growth’ focussed coalition, which places a higher priority on deregulation and is overall not supportive of comprehensive food environment regulation. The industry and economic growth coalition appears to be dominant, based on its relative power, resources and coordination. However, the public health nutrition coalition maintains influence through individual activism, collective lobbying and government pressure (e.g. by civil society), and expert knowledge generation. Conclusions Our analysis suggests that industry and economic growth-focussed coalitions are highly capable of leveraging networks, institutional structures and ideologies to their advantage, and are a formidable source of opposition acting to constrain nutrition policy space globally, including through TIAs. Opportunities for global public health nutrition coalitions to strengthen their influence in the support of nutrition policy space include strategic evidence generation and coalition-building through broader engagement and capacity-building.
... Brand advertising in particular relates to investments in trademarks. While literature on IIA and nutrition policy space is sparse, certain scholars have expressed concern that marketing restrictions implying any devaluation of an investor's investments (i.e. through decreased sales) could be argued to amount to indirect expropriation (31,(59)(60)(61) ., though participants were sceptical of the likelihood of an actual challenge (P4, P5, P6, P7, P8, P9) General Agreement on Trade in Services (GATS) ...
Article
Objective To determine the implications of international trade and investment agreements (TIAs) for national governments’ policy space to restrict the marketing of unhealthy food and beverages to children. Design In-depth interviews based on a series of policy scenario ‘vignettes,’ guided by an adapted scenario analysis methodology. Setting Global Participants Nine key informants from relevant sectors, with expertise regarding the intersection of public health nutrition policy, international trade law, and international investment law. Results Participants consistently identified the relevance of several principles, common to many TIAs: non-discrimination, necessity and justification, market access requirements and quantitative restrictions, intellectual property rights and trademark protections, and fair and equitable treatment of investors. Two main policy design factors that interact heavily with TIA-related policy space were the framing of objectives, and regulatory distinctions drawn. Contextual factors may shape the analysis of TIA-related policy space on a case-by-case basis, while the relative power of the actors and institutions involved in both domestic and international policy spheres may influence whether and how such legal constraints to policy space are activated. Conclusions Regulatory marketing restrictions run the risk of incurring challenges under World Trade Organization (WTO) agreements and other free trade and investment agreements. However, concerned policy makers should be aware of the difference between theoretical risk, threat of a challenge, and realistic initiation and/or loss of a formal dispute. Our findings indicate that there is policy space to adopt significant marketing restrictions, though an understanding of these legal risks, and strategic policy design, are important.
Article
Full-text available
Background The UK’s post-Brexit trade strategy has potentially important implications for population health and equity. In particular, it will impact on the structural risk factors for non-communicable diseases (NCDs), including the consumption of health-harming commodities such as tobacco, alcohol and ultra-processed food and beverages. This article catalogues recent developments in UK trade policy. It then presents a narrative review of the existing research literature on trade and health and previous, prospective studies on the health impacts of Brexit. In so doing it identifies key questions and foci for a future research agenda on the implications of UK’s emerging trade regime for NCD prevention. Main text We identify five key areas for future research. (1) Additional scholarship to document the health effects of key trade agreements negotiated by the UK government; (2) The implications of these agreements for policy-making to address health impacts, including the potential for legal challenges under dispute settlement mechanisms; (3) The strategic objectives being pursued by the UK government and the extent to which they support or undermine public health; (4) The process of trade policy-making, its openness to public health interests and actors and the impact of the political and ideological legacy of Brexit on outcomes; (5) The impact of the UK’s post-Brexit trade policy on partner countries and blocs and their cumulative impact on the global trade regime. Conclusions Further research is urgently need to understand the ways in which the UK’s post-Brexit trade strategy will impact on NCDs and policy responses to address these, including the openness of the trade policy architecture to health issues. The outcomes of this process will have wider systemic effects on the global trade regime with implications for health. Researchers must be cognizant of the ideological components of the policy debate which have been absent from previous analysis of Brexit, trade and health.
Book
Full-text available
Preface Globalization and the rise of international trade of goods and services in terms of volume and speed influence human health. This influence can be both positive and negative. Our work on "trade and health" is all about harnessing and maximizing opportunities to promote public health and minimizing the risks and threats. WHO and its Member States are very conscious of these opportunities and challenges. In 2006 the World Health Assembly adopted a resolution (WHA 59.26) on international trade and health and urged Member States to take advantage of the potential opportunities, and address the potential challenges, that trade and trade agreements may have for health. There are a number of additional WHO resolutions and decisions that involve the international trade and health interface. These deal with subjects such as tobacco control, the HIV/AIDS epidemic, intellectual property, international migration of health personnel, medical tourism as well as nutrition and alcohol policies. WHO's work on international health regulations (IHR), which addresses health and trade issues, epitomizes the significance that we attach to helping the international community to prevent and respond to acute public health risks that have the potential to cross borders and threaten people worldwide. At the global level, WHO works closely with relevant organizations such as the World Trade Organization, the World Intellectual Property Organization as well as the United Nations Conference on Trade and Development. We work with the Food and Agriculture Organization of the United Nations to develop and promote international food standards through the Codex Alimentarius to protect the health of consumers and ensure fair trade practices. The WHO Framework Convention of Tobacco Control (FCTC) was the first international treaty negotiated under the auspices of WHO to tackle the globalization of the tobacco epidemic. These are just a few examples of WHO's involvement in trade and health related issues at global level. Coherence between trade and health policies at the country level is the key to effectively manage the interface between trade and health. This requires going beyond the confines of sectoral policies to embrace new collaborations. The first step towards policy coherence is the development of a good understanding of the issues, based on the analysis of the situation from both a health and trade perspective. WHO has for a long-time identified this as an area, which needs to be facilitated through technical cooperation and provision of assistance through offering reliable empirical evidence and a menu of viable policy options. This publication is part of WHO's response to help develop a better understanding of the issues involved in the interface of trade and health, generally and with reference to specific issues. We have produced a number of important publications on trade in health services, intellectual property and public health, and health impact of trade liberalization. Our latest publication is a product of the trilateral cooperation between WHO, WTO and WIPO, titled "Promoting access to medical technologies and innovation: intersections between public health, intellectual property and trade".1 On tobacco and trade, WHO has published "Confronting the tobacco epidemic in a new era of trade and investment liberalization" in 2012.2 This publication was initiated some years ago as part of a programme to support WHO Member States to systematically assess their trade and health situation. The project was originally conceived as two parts: the first, a background document on key issues in trade and health and the second, an assessment tool to facilitate the development of national strategies on issues at the trade and health interface. We are now pleased to make available online this background document.
Article
Full-text available
The UN High-Level Meeting on Non-Communicable Diseases (NCDs) in September, 2011, is an unprecedented opportunity to create a sustained global movement against premature death and preventable morbidity and disability from NCDs, mainly heart disease, stroke, cancer, diabetes, and chronic respiratory disease. The increasing global crisis in NCDs is a barrier to development goals including poverty reduction, health equity, economic stability, and human security. The Lancet NCD Action Group and the NCD Alliance propose five overarching priority actions for the response to the crisis—leadership, prevention, treatment, international cooperation, and monitoring and accountability—and the delivery of five priority interventions—tobacco control, salt reduction, improved diets and physical activity, reduction in hazardous alcohol intake, and essential drugs and technologies. The priority interventions were chosen for their health effects, cost-effectiveness, low costs of implementation, and political and financial feasibility. The most urgent and immediate priority is tobacco control. We propose as a goal for 2040, a world essentially free from tobacco where less than 5% of people use tobacco. Implementation of the priority interventions, at an estimated global commitment of about US$9 billion per year, will bring enormous benefits to social and economic development and to the health sector. If widely adopted, these interventions will achieve the global goal of reducing NCD death rates by 2% per year, averting tens of millions of premature deaths in this decade.
Article
Full-text available
Both economic theory and recent empirical evidence suggest that FDI has a beneficial impact on developing host countries. But recent work also points to some potential risks: it can be reversed through financial transactions; it can be excessive owing to adverse selection and fire sales; its benefits can be limited by leverage; and a high share of FDI in a country's total capital inflows may reflect its institutions' weakness rather than their strength. Though the empirical relevance of some of these sources of risk remains to be demonstrated, the potential risks do appear to make a case for taking a nuanced view of the likely effects of FDI. Policy recommendations for developing countries should focus on improving the investment climate for all kinds of capital, domestic as well as foreign.
Article
Full-text available
Food security is of great urgency in the developing world. Many countries have sought to attract foreign capital to promote development and reduce hunger. But how do foreign direct investment (FDI) inflows affect food security? Extant research based on dependency and modernization arguments or the globalization debate offers contradictory theoretical predictions and produces conflicting evidence. We resolve the puzzle by disaggregating FDI. Foreign investments in distinct economic sectors have disparate attributes, producing different welfare consequences for food security. We test our arguments using the food security indicators recommended by the Food and Agriculture Organization (FAO) and new data on sector-specific FDI inflows to 56 developing and transition economies between 1981 and 2001. We find highly robust evidence that manufacturing FDI improves food security. We also find that primary-sector FDI reduces food security and that service-sector FDI has an ambiguous but sometimes negative effect. These results are largely robust under different statistical methods, additional control variables, and alternative measures of food security. Our research offers policy lessons for how to improve food security and demonstrates how to resolve theoretically the long-standing dependency-modernization controversy that has informed the contemporary debate between the pro- and anti-globalization camps.
Article
Full-text available
This paper attempts to reconcile the often inconclusive evidence on the role of FDI in the process of economic development by taking into account the heterogeneity both among industries and among countries. Using a comparable database at the industry level for 35 countries in the OECD, Asia and Eastern Europe from 1987 to 2002, we test for the influence of both stage of development and sectoral FDI patterns in the relationship between FDI and productivity growth. In certain industries and for the catching-up countries, a significant and positive relationship emerges when FDI coincides with high investment or export orientation.
Article
Full-text available
The UN High-Level Meeting on Non-Communicable Diseases (NCDs) in September, 2011, is an unprecedented opportunity to create a sustained global movement against premature death and preventable morbidity and disability from NCDs, mainly heart disease, stroke, cancer, diabetes, and chronic respiratory disease. The increasing global crisis in NCDs is a barrier to development goals including poverty reduction, health equity, economic stability, and human security. The Lancet NCD Action Group and the NCD Alliance propose five overarching priority actions for the response to the crisis--leadership, prevention, treatment, international cooperation, and monitoring and accountability--and the delivery of five priority interventions--tobacco control, salt reduction, improved diets and physical activity, reduction in hazardous alcohol intake, and essential drugs and technologies. The priority interventions were chosen for their health effects, cost-effectiveness, low costs of implementation, and political and financial feasibility. The most urgent and immediate priority is tobacco control. We propose as a goal for 2040, a world essentially free from tobacco where less than 5% of people use tobacco. Implementation of the priority interventions, at an estimated global commitment of about US$9 billion per year, will bring enormous benefits to social and economic development and to the health sector. If widely adopted, these interventions will achieve the global goal of reducing NCD death rates by 2% per year, averting tens of millions of premature deaths in this decade.
Article
Full-text available
To examine the role of foreign direct investment (FDI) in the nutrition transition, focusing on highly processed foods. Data on FDI were identified from reports/databases and then compiled and analysed. A review of published literature on FDI into the food sector was conducted. The nutrition transition is a public health concern owing to its connection with the rising burden of obesity and diet-related chronic diseases in developing countries. Global health leaders are calling for action to address the threat. Highly processed foods often have considerable fat, sugar and salt content, and warrant closer examination. FDI into food processing, service and retail has risen rapidly since the 1980s, mainly from transnational food companies (TFCs) in developed countries. As FDI has risen, so has the proportion invested in highly processed foods for sale in the host market. FDI has proved more effective than trade in generating sales of highly processed foods, and enables TFCs to cut costs, gain market power and obtain efficiencies in distribution and marketing. The amount of FDI targeted at developing countries is increasing; while a disproportionate share enters the larger developing economies, foreign affiliates of TFCs are among the largest companies in low- and low- to middle-income countries. The effect of FDI is to make more highly processed foods available to more people. FDI has made it possible to lower prices, open up new purchasing channels, optimise the effectiveness of marketing and advertising, and increase sales. FDI has been a key mechanism in shaping the global market for highly processed foods. Notwithstanding the role of demand-side factors, it has played a role in the nutrition transition by enabling and promoting the consumption of these foods in developing countries. Empirical data on consumption patterns of highly processed foods in developing countries are critically needed, but since FDI is a long-term investment vehicle, it is reasonable to assume that availability and consumption of highly processed foods will continue to increase. FDI can, however, bring considerable benefits as well as risks. Through its position 'upstream', FDI would therefore be an appropriate entry-point to implement a range of public health policies to 'redirect' the nutrition transition.
Article
Are jobs created by foreign investors good jobs? The evidence reviewed in this article is consistent with the view that jobs created by foreign direct investment (FDI) are good jobs, both from the worker’s and the country’s perspective. From the worker’s perspective, this is because such jobs are likely to pay higher wages than jobs in domestic firms, at least in developing countries, and because foreign employers tend to offer more training than local firms do. From the country’s perspective, jobs in foreign affiliates are good jobs because FDI inflows boost the aggregate productivity of the host country.
Article
In-store food marketing can influence food-purchasing behaviors and warrants increased attention given the dramatic rise in obesity. Descriptive and experimental studies of key marketing components have been conducted by consumer scientists, marketing researchers, and public health experts. This review synthesizes research and publications from industry and academic sources and provides direction for developing and evaluating promising interventions. Literature sources for the review were English-language articles published from 1995 to 2010, identified from multidisciplinary search indexes, backward searches of cited articles, review articles, industry reports, and online sources. Only articles that focused on physical grocery stores and food products were included. Data collection occurred in 2010 and 2011. Articles were classified in the categories of product, price, placement, and promotion and divided into controlled laboratory experiments, observation, and field experiments; 125 primary peer-reviewed articles met the inclusion criteria. Narrative synthesis methods were used. Key findings were synthesized by category of focus and study design. Evidence synthesis was completed in 2011. Findings suggest several strategies for in-store marketing to promote healthful eating by increasing availability, affordability, prominence, and promotion of healthful foods and/or restricting or de-marketing unhealthy foods. Key results of research in controlled laboratory studies should be adapted and tested in real-world in-store settings. Industry methods for assessing consumer behavior, such as electronic sales data and individually linked sales information from loyalty card holders, can help public health researchers increase the scientific rigor of field studies.
Article
The obesity epidemic is spreading to low-income and middle-income countries as a result of new dietary habits and sedentary ways of life, fuelling chronic diseases and premature mortality. In this report we present an assessment of public health strategies designed to tackle behavioural risk factors for chronic diseases that are closely linked with obesity, including aspects of diet and physical inactivity, in Brazil, China, India, Mexico, Russia, and South Africa. England was included for comparative purposes. Several population-based prevention policies can be expected to generate substantial health gains while entirely or largely paying for themselves through future reductions of health-care expenditures. These strategies include health information and communication strategies that improve population awareness about the benefits of healthy eating and physical activity; fiscal measures that increase the price of unhealthy food content or reduce the cost of healthy foods rich in fibre; and regulatory measures that improve nutritional information or restrict the marketing of unhealthy foods to children. A package of measures for the prevention of chronic diseases would deliver substantial health gains, with a very favourable cost-effectiveness profile.