Trade sanctions, human rights and multinational corporations: the EU-ACP context

Significant numbers of multinational corporations ("MNCs") from the European Union ("EU") operate in the African, Caribbean and Pacific ("ACP") countries. The ACP countries are attractive operational bases because of the enormous availability of raw materials, low cost of labour, and favourable regulatory frameworks. For most ACP countries, the EU is their main trading partner. Trade between the two regions is thus very important for ACP countries, because it constitutes, in most cases, their main revenue source. While the trade arrangement is marginal for the EU, it is important for the EU MNCs' profitability in a competitive global market. Even though MNCs have been beneficial to host States in the ACP, by providing revenue for governments and creating jobs, their operations have led to various externalities involving violations of human rights. This paper seeks to explore the scope of the human rights provisions in EU-ACP agreements and the instances when these provisions can lead to imposition of sanctions in cases of human rights violations by MNCs