Bernas Public International Law – INTERNATIONAL ECONOMIC LAW

What is International Economic Law?

In its broadest sense includes all international law and international agreements governing economic transactions that cross state boundaries or that otherwise have implications for more than one state

Those involving the movement of

a. Goods

b. Funds

c. Persons

d. Intangibles

e. Technology

f. Vessels

g. Aircraft

Characteristics:

1. It is part of public international law

-Treaties alone make this so

2. It is intertwined with municipal law

3. It requires multi-disciplinary thinking

4. Empirical research is very important for understanding its operation

Important Economic Institutions

1. Objectives of the Bretton Woods Conference of 1944:

a. To advance the reduction of tariffs and other trade barriers

b. To create a global framework designed to minimize economic conflicts

2. International Monetary Fund

• Function: to provide short-term financing to countries in balance of payments difficulties

3. International Bank for Reconstruction and Development [World Bank]

• Provide long-term capital to support growth and development

4. International Trade Organization (ITO)

• Promote a liberal trading system by proscribing certain protectionist trade rules
• ITO à General Agreement on Tariff and Trade (GATT) à World Trade Organization (WTO)

5. WTO

• Oversees the operation of GATT and a new General Agreement on Trade and Services

Key Principles of International Trade Law

1. Agreed Tariff Levels

• GATT contains specified tariff levels for each State
• However, these can be re-negotiated

2. Most Favored Nation Principle

• Embodies the principle of non-discrimination
• Any special treatment given to a product from one trading partner must be available for like products originating from or destined for other contracting partners
• Tariff concessions

3. Principle of National Treatment

• Prohibits discrimination between domestic producers and foreign producers
• Once foreign producers have paid the proper border charges, no additional burdens may be imposed on foreign products

4. Principle of Tariffication

• Prohibits the use of quotas on imports or exports and the use of licenses on importation or exportation
• Purpose: to prevent the imposition of non-tariff barriers
• Exception:

-GATT provides for a quantitative and temporary basis for balance of payments or infant industry reasons in favor of developing states

Exceptions to Key Principles

1. General exceptions

a. Public morals

b. Public health

c. Currency protection

d. Products of prison labor

e. National treasures of historic, artistic or archaeological value

f. Protection of exhaustible natural resources

2. Security exceptions

3. Regional Trade exceptions

4. Exceptions for developing nations [Tanada v. Angara]

Dispute Resolution Body

• Established by the WTO agreement
• Consists of General Council of the WTO
• Operates under the Understanding on Rules and Procedures Governing the Settlement of Disputes 1994

a. Each State has a right to establish a Panel

b. It provided for a permanent Appellate Body consisting of persons with recognized expertise in law

Expanding Scope of International Economic Law

• Uruguay Round of 1994 expanded the scope of the multilateral trade regime
• It includes:

a. Intellectual property

b. Services

c. Sanitary and physiosanitary measures

d. Investment

e. Strengthening of the rules on subsidies, countervailing duties and ati-dumping

• International Economic Law affects the sovereignty of States and their capacity to give force to national policy objectives