Recognition and Application of the “Precautionary Principle” in Regulating International Commercial Relations between States and Business Companies

Ebrahimi, SeyedehTahereh; Mobayen, Hojjat; Zakerinia, Haniyeh

doi:10.48308/eclr.2025.242044.1209

Recognition and Application of the “Precautionary Principle” in Regulating International Commercial Relations between States and Business Companies

Document Type : Original Article

Authors

SeyedehTahereh Ebrahimi ¹

Hojjat Mobayen ¹

Haniyeh Zakerinia ²

¹ L.L.M. Student, Faculty of Law and Political Science, Shiraz University, Shiraz, Iran,

² Assistant Professor, School of Law and Political Science, Shiraz University, Shiraz, Iran. Corresponding Author Email: h.zakerinia@shirazu.ac.ir

https://doi.org/10.48308/eclr.2025.242044.1209

Abstract

While the precautionary principle has been articulated in various international legal instruments, its application remains subject to differing interpretations. Established to legitimize state-led precautionary measures against potential serious and irreversible environmental hazards, the principle stipulates that scientific uncertainty shall not justify postponing preventive action. Using a descriptive-analytical method, this research examines the principle's effects and application within international commercial relations between states and business companies. Despite significant challenges—including its inherent conflict with free trade, conceptual ambiguities, and its misuse by states for political and economic objectives—the principle's application in this arena is increasing. The most significant effects of the precautionary principle in regulating these relations include indirect influence through standard-setting and the creation of civil liability; the imposition of obligations on states to monitor commercial markets and restrict hazardous products, and the direct incorporation into trade agreements and the jurisprudence of investment arbitration tribunals. Preventing the misuse of the principle by states necessitates transparency, novel risk assessment methods, and adherence to the four principles of proportionality, least trade-restrictive measures, non-discrimination, and consistency.

Keywords

'؛ Precautionary Principle'؛ International Commercial Relations'؛ Principle of Freedom of Trade'؛

'؛ Preventive Actions

Risk Assessment'

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