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Charter of Economic Rights
and Duties of States
On 12 December 1974, the General Assembly adopted the Charter of Economic Rights and Duties of States, contained in resolution 3281 (XXIX). It was adopted by a roll-call vote of 120 in favour to 6 against, with 10 abstentions. In the preamble of the resolution, the Assembly stressed the fact that “the Charter shall constitute an effective instrument towards the establishment of a new system of international economic relations based on equity, sovereign equality, and interdependence of the interests of developed and developing countries”.
THE GENERAL ASSEMBLY,
Reaffirming the fundamental purposes of the United Nations, in particular, the maintenance of international peace and security, the development of friendly relations among nations and the achievement of international co-operation in solving international problems in the economic and social fields,
Affirming the need for strengthening international co-operation in these fields,
Reaffirming further the need for strengthening international co-operation for development,
Declaring that it is a fundamental purpose of this Charter to promote the establishment of the new international economic order, based on equity, sovereign equality, interdependence, common interest and co-operation among all States, irrespective of their economic and social systems,
Desirous of contributing to the creation of conditions for:
(a) The attainment of wider prosperity among all countries and of higher standards of living for all peoples,
(b) The promotion by the entire international community of economic and social progress of all countries, especially developing countries,
(c) The encouragement of co-operation, on the basis of mutual advantage and equitable benefits for all peace-loving States which are willing to carry out the provisions of this Charter, in the economic, trade, scientific and technical fields, regardless of political, economic or social systems,
(d) The overcoming of main obstacles in the way of the economic development of the developing countries,
(e) The acceleration of the economic growth of developing countries with a view to bridging the economic gap between developing and developed countries,
(f) The protection, preservation and enhancement of the environment, Mindful of the need to establish and maintain a just and equitable economic and social order through:
(a) The achievement of more rational and equitable international economic relations and the encouragement of structural changes in the world economy,
(b) The creation of conditions which permit the further expansion of trade and intensification of economic co-operation among all nations,
(c) The strengthening of the economic independence of developing countries,
(d) The establishment and promotion of international economic relations, taking into account the agreed differences in development of the developing countries and their specific needs,
Determined to promote collective economic security for development, in particular of the developing countries, with strict respect for the sovereign equality of each State and through the co-operation of the entire international community,
Considering that genuine co-operation among States, based on joint consideration of and concerted action regarding international economic problems, is essential for fulfilling the international community's common desire to achieve a just and rational development of all parts of the world,
Stressing the importance of ensuring appropriate conditions for the conduct of normal economic relations among all States, irrespective of differences in social and economic systems, and for the full.respect for the rights of all peoples, as well as the strengthening of instruments of international economic co-operation as means for the consolidation of peace for the benefit of all,
Convinced of the need to develop a system of international economic relations on the basis of sovereign equality, mutual and equitable benefit and the close interrelationship of the interests of all States,
Reiterating that the responsibility for the development of every country rests primarily upon itself but that concomitant and effective international cooperation is an essential factor for the full achievement of its own development goals,
Firmly convinced of the urgent need to evolve a substantially improved system of international economic relations,
Solemnly adopts the present Charter of Economic Rights and Duties of States.
Fundamentals of international economic relations
Economic as well as political and other relations among States shall be gov-
(a) Sovereignty, territorial integrity and political independence of States;
(i) Remedying of injustices which have been brought about by force and which deprive a nation of the natural means necessary for its normal development;
(j) Fulfilment in good faith of international obligations;
(0) Free access to and from the sea by land-locked countries within the framework of the above principles.
Economic rights and duties of States
Every State has the sovereign and inalienable right to choose its economic system as well as its political, social and cultural systems in accordance with the will of its people, without outside interference, coercion or threat in any form whatsoever.
Article 2 1. Every State has and shall freely exercise full permanent sovereignty, including possession, use and disposal, over all its wealth, natural resources and economic activities.
2. Each State has the right:
(a) To regulate and exercise authority over foreign investment within its national jurisdiction in accordance with its laws and regulations and in conformity with its national objectives and priorities. No State shall be compelled to grant preferential treatment to foreign investment;
(b) To regulate and supervise the activities of transnational corporations within its national jurisdiction and take measures to ensure that such activities comply with its laws, rules and regulations and conform with its economic and social policies. Transnational corporations shall not intervene in the internal affairs of a host State. Every State should, with full regard for its sovereign rights, co-operate with other States in the exercise of the right set forth in this subparagraph;
(c) To nationalize, expropriate or transfer ownership of foreign property, in which case appropriate compensation should be paid by the State adopting such measures, taking into account its relevant laws and regulations and all circumstances that the State considers pertinent. In any case where the question of compensation gives rise to a controversy, it shall be settled under the domestic law of the nationalizing State and by its tribunals, unless it is freely and mutually agreed by all States concerned that other peaceful means be sought on the basis of the sovereign equality of States and in accordance with the principle of free choice of means.
In the exploitation of natural resources shared by two or more countries, each State must co-operate on the basis of a system of information and prior consultations in order to achieve optimum use of such resources without causing damage to the legitimate interest of others.
Every State has the right to engage in international trade and other forms of economic co-operation irrespective of any differences in political, economic and social systems. No State shall be subjected to discrimination of any kind based solely on such differences. In the pursuit of international trade and other forms of economic co-operation, every State is free to choose the forms of organization of its foreign economic relations and to enter into bilateral and multilateral arrangements consistent with its international obligations and with the needs of international economic co-operation.
All States have the right to associate in organizations of primary commodity producers in order to develop their national economies to achieve stable financing for their development, and in pursuance of their aims, to assist in the promotion of sustained growth of the world economy, in particular accelerating the development of developing countries. Correspondingly all States have the duty to respect that right by refraining from applying economic and political measures that would limit it.