Introduction

The process of economic globalization can be described as the defining feature of today's world and
it is a process in which high level of international trade and foreign direct investment are involved. In
the present assignment, a debate is going to be held between the Prime Minister of New Zealand and
the chairman of Newland Coalition for a Better World that represents the labor unions of Newland and
also the human rights organizations as well as the consumer and environmental organizations of the
country. Some of the issues that are likely to be debated include the fact if the individual agreement
will prevail over the constitution of Newland and similarly if the WTO law will have any direct impact
on the courts of the land. Similarly the impact of taking WTO membership is also likely to be discussed
as well as the notion of state sovereignty and the impact of globalization on this notion.

For example, according to an estimate by the World Bank, by opening all the trade barriers across the
world, the global income can increase by US $2.8 trillion and in this way, nearly 320 million people
can be saved from poverty. However, for the purpose of realizing this opportunity, it is important that
economic globalization is regulated and managed at the international level. If it is not done so, it is
likely that the economic globalization may prove to be a curse instead of being a blessing to the
humankind and in such a case, it may aggravate economic inequality, environmental degradation
(Bacchetta and Jansen, 2003). At present the law of WTO can be considered as the most ambitious
effort for regulating and managing international trade.

Economic Globalization: The term economic globalization is frequently used by politicians, officials of
the government, trade unionists, environmentalists, Third World activists, lawyers and economists.
The term globalization and particularly 'economic globalization' has been used by different people to
describe the defining feature of the world after the Cold War. However, it is important to know the
exact meaning of the term, economic globalization. For example, the concept of globalization has been
described as the "closer integration of these nations and people of the world which has been achieved
by significant reduction of cost of transportation and communication as well as by the breaking down
of the artificial barriers that were present in the flow of goods, services and capital and to some extent,
the movement of people across borders (Stiglitz, 2002).

In the same way, economic globalization can also be defined as the integration of markets,
technologies and nation-states to an extent that were not seen before. It is a, it allows the individuals,
corporations and the nations to reach around the world, faster, farther and cheaper as compared to
before (Friedman, 2000). It also needs to be noted in this regard that it is a multifaceted phenomenon
and still a lot needs to be done to understand economic globalization completely. However in essence,
economic globalization can be described as a gradual integration of the economies of different
countries into a borderless, global economy. The economic globalization includes free international
trade and also unrestricted foreign direct investment. The impact of economic globalization can be
seen on all the people of the world and it touches different aspects of the daily lives of the people. For
example, economic globalization has an impact on the jobs of the people, their health, their education,
food and also on their leisure time. Economic globalization also has an impact on the price; people
have to pay for the daily commodities or health services.

Although economic globalization is generally perceived as a new phenomenon, however it needs to

be noted that the present-day global economic integration is not unprecedented. Much before the First
World War, there was significant flow of goods and capital across the borders of different countries
and similarly the flow of people during these times was even much more than now. This was the period
when the loading of trade barriers supported globalization and also the significant reductions that took
place in the cost of transport as a result of the technological innovations like the introduction of
steamships and railways. At the same time, it also needs to be noted that there is a clear trend present
diverse globalization however the extent of global economic integration in today's world can be
exaggerated. It is believed that international trade should generally force the domestic, high-cost
producers to decrease the prices of their products and similarly it should bring the price of products
and services from different countries closer. However, there is still a significant difference present in
the prices of products and services. For example, even in case of the European Union, there is a
difference in prices between different countries of EU. Although, partly this difference can be attributed
to the difference that is present in cost of passport, taxes and the efficiency of distribution networks,
however subtle difference is also present, at least outside the European Union, as a result of the
continuous presence of significant trade barriers. Moreover, while it is possible for goods and services
and capital to move freely across borders but, still there are several restrictions placed on the free
movement of workers.

Regarding the regarding the relationship that exists between the WTO law and national law, there are
two aspects that need to be examined. The first aspect is related with the place of national law in the
WTO law and the second issue deals with the place of WTO law in the national judicial system.
Regarding the place of the national of a country in WTO law, it has been provided by the WTO
agreement in Article XVI:4 that it shall be ensured by each member state that its national laws are in
conformity with the obligations of such a country as provided in the annexed Agreements. In this way,
a general rule of international law that has also been mentioned in article 27 of the Vienna Convention
according to which, the provisions of its internal laws cannot be invoked by a party in order to justify
the failure of such a party to perform a treaty. For example it was stated by the Appellate Body that
the domestic laws of a WTO member cannot be used for excusing such the member state from fulfilling
the international obligations of the member (Brazil – Aircraft (Article 21.5 – Canada). However, it needs
to be noted in this regard that when it comes to the measures and actions taken by the regional and
local governments and authorities, it has been provided by Article XXIV:12 of GATT that reasonable
measures shall be taken by each Member in order to make sure that the regional and local authorities
and governments within the territory of such a member observe the provisions of this Agreement.

This means that it is the responsibility of the WTO members to enforce the compliance of obligations
by regional and local governments that have been prescribed by GATT, 1994 only to the extent that
the Members dispose of the necessary constitutional powers for doing so. In this regard it needs to be
noted that where securing compliance with the obligations described by GATT is not possible, the
provisions dealing with compensation and the suspension of concessions are applicable.

On the other hand, while dealing with the issue as to how the national law should be handled by panels
and the Appellate Body, it was stated by the Appellate Body that in case of public international law,
the municipal law may be treated by an international tribunal in many ways. For example, the national
law can be used as evidence of acts and that the same time; it may also provide evidence regarding
State practice. It also needs to be noted that the municipal law may also constitute evidence regarding
the compliance or noncompliance of international obligations (India – Patents (US). The position
adopted by the Appellate Body in this regard also found support from the ruling given by Permanent
Court of International Justice in which it was stated by the Court that “a question may be asked if a
difficulty is not created by the fact that the court has to deal with Polish law. However it does not appear
to be the case. From the point of view of international law and also the viewpoint of this Court, national
laws are considered as merely facts that are capable of expressing the will and constitute the activities
of States, in the same way in which the legal decisions and administrative measures do the same.
Certainly the Court is not required to interpret the Polish law however, the Court is not prevented from
giving a judgment regarding the question if, while applying the law, Poland is acting according to its
obligations under the Geneva Convention” (Certain German Interests in Polish Upper Silesia, 1926).

In the same way, regarding the effect of WTO law on the national courts of Newland first of all, it needs
to be noted that in case the provision of national law allows different interpretations, such a provision
should be interpreted, whenever possible, in a way that avoids any conflict with the law of WTO. In
case of many countries, this doctrine of treaty consistent interpretation has been adopted by the courts.
For example, the European Court of Justice has also confirmed the doctrine of treaty-consistent
interpretation of the national laws regarding the WTO agreements. However there may be a case
when it may not be possible to avoid the conflict between a national law and the provisions of WTO
law. In this regard, it needs to be noted that if the provisions of WTO law are provided direct effect and
can be important for the purpose of challenging the legality of national measures, the enforceability as
well as the effectiveness of these measures will be improved significantly as it will allow the member
states much less flexibility regarding compliance with these provisions. However, a fierce debate is
going on if direct effect should be granted to the provisions of WTO law.
Conclusion:
The legal position in this regard can be summed up as follows. Although, it is the responsibility of each
member to fully execute the commitments undertaken by it, however the Members are free to
determine the legal means that are considered as appropriate by them for achieving that objective in
their domestic legal system (Eeckhout, 1997).

In view of the demonstrations on the streets of the capital of Newland, Nontes, by more than 50,000
people, the government of Newland has asked for a debate between the Prime Minister of Newland
and the chairman of NCBW. Therefore, the above-mentioned issues can be raised by the Chairman
during the debate