3 - The European Union

Summary

The EU has been reluctant to engage in the negotiations for a UN treaty on business and human rights because such a treaty would have an impact on the competitiveness of EU-based corporations in the global marketplace, in particular, vis-à-vis competitors from developing and emerging states. Bearing in mind these observations relating to the EU’s position in the ongoing treaty process, this chapter aims to assess whether the EU has been able to mitigate the effects on the competitiveness of EU-based corporations in its unilateral ‘business and human rights’ legislative initiatives. After assessing which initiatives have been prioritised by the European Commission, this chapter investigates to what extent competition from non-EU corporations – and, in particular, corporations from developing and emerging states – has been taken into account during the drafting process of these initiatives, and to what extent they have a regulatory impact on such corporations. This chapter also discusses private international law issues.