Right to development and investment regulation in developing countries

Purpose Developing countries see the right to development as an opportunity to adopt policies and laws that aim to boost local development. However, this is limited by the Trade-Related Investment Measures (TRIMs) Agreement, as it establishes formal nondiscrimination, in the sense that countries must refrain from practices that distort trade, and they must find a balance between the realization of the human right to development and compliance with the multilateral trade system commitments. The study aims to discuss the extent to which flexibilization of TRIMs Agreement standards can serve as a mechanism for developing countries to find the above-mentioned balance. Design/methodology/approach The paper adopts a qualitative methodology supported by a legal-theoretical approach. The study critically analyses and systematically interprets TRIMs Agreement provisions on nondiscrimination vis-à-vis the right to development’s normative framework of the principles of solidarity and the duty to cooperate. Findings The study argues for the application of a material nondiscrimination principle, so that developing countries, through their investment regulation, can realize the right to development without violating World Trade Organization rules. Originality/value To the best of the authors’ knowledge, this is the first paper to discuss the mechanism to balance the realization of the right to development, as representing the social dimension of international economic relations and the fulfillment of the TRIMs Agreement rules and principles.