International Economic Law

Introduction
 Introduction
 What is IEL?
 Understanding the meaning of IEL is fundamental
to examine its significance for public and private
sectors.
 No Simple and straight forward definition of IEL.
 Understanding IEL From different perspectives-
 As the name indicates IEL has to be seen from different
perspectives-Economic and Law
 There is undeniable relationship between understanding
nature and source of IEL with a perspective of international
economic order.
 ....
 The international economic order is composed of varied
stand points:
 legal, economic, political, north/south divide, comparative
advantage model, sustainable development, etc.
 There appears to be two conceptions of IEL
 First- It is understood as including all branches of law concerned with
economic phenomena of international concern-
concern
 It covers all those international rules pertaining to
economic transactions and relations, as well as those
pertaining to governmental regulation of economic matters.
 As such it includes private international law, trans-national business
law, IT, Investment, domestic law…
 ....
 Second conception: IEL understood as a branch of
public international law.
 IEL is that part of international law that deals with the
economic relations among countries.
 This is the narrow definition.
 This definition does not deny the implications of IEL
on private sectors.
 In fact, it is clear that even though the rules of IEL
may be set by countries, the main actors of the
economic relations of the countries Are private actors
or sectors.
 ...
• IEL as understood by the second conception is
the scope of this course.
• The private aspect of IEL as explained by the first
definition is covered by other courses including
International business transactions, commercial
dispute settlement, etc
• Though this course focuses on the public aspect
of IEL, it has to be known that public aspects
ultimately advance private economic
structures and transactions.
 ....
• Domestic law affects both inward and outward
relations between states and people.
• IEL also affects domestic law.
• Because of globalisation, it is not possible to talk
about the national economy independent of
world economic order.
 ....
• Capital is no longer domestic; nor is the
manufacturing industry/process.
• States are increasingly less in control of
their economies.
• Hence, what is discussed under the
public aspect of IEL has a direct
bearing on domestic private and public
sectors
 Scope of International
Economic Law
• Interdisciplinary consideration:
– Legal, Economic, Political, Cultural etc.
Dimensions
• Public International Law vs. International
Economic Law
• Trade, Monetary, Development/Investment
Matters
Goals of International Economic Law
 Raising living standards, ensuring full
employment, facilitating growth in real income,
etc. ---as economic goals

 Engaging in the development process of

developing countries ---as commitment

 Preserving the environment, protecting

transnational economic rights as human right, etc.
---as values
Sources of International Economic Law
(The Sources in General)
 Formal sources of public international law
• International treaties: bi-lateral, regional, multilateral
---common in international economic law
 International custom ---marginal in international
economic law
• E.g. norms on expropriation, treaty practice of
economically powerful states, common activities of
international organizations
 General Principles of Law (when there is
harmonization of domestic laws) ---almost none in
international economic law
 ...
• Others
• Soft law
• not binding, expression of preference but
influential, diplomatic approach
• International & national judicial decisions,
arbitral awards & teachings of the most highly
qualified ---interpretative use only, no case
law yet
 Sources of International Economic Law Contd.
(Relative importance of the sources in international
economic law)

 In international trade matters

 Multilateral, bilateral and regional agreements
(treaties) are dominant (because of assumption
of equality between states in trade matters)
 In international monetary and
development matters
 Multilateral agreements (treaties) and soft law
are dominant (because of the weight of state
power in monetary and development relations)
 ......
• In international investment matters
– Bilateral agreements (treaties) are dominant (because of
the weight of national sovereignty in regulatory matters)
• In areas where neither multilateral nor bilateral
progress exists (e.g. competition, environment, etc.)
– National laws of economically powerful states are
dominant
• General evolution of sources has been:
– from general international law -to bilateral agreements -to
multilateral structures
 Sources of International Economic Law
Contd (Remark)
• Sources have power dimension and strategic
aspects
• Sources serve the goals of certain interest
groups more than others

• Sources have the following common limitations:

 Lack of coordination
 Conflict
 Varied interpretation
 Varied national reception
Participants in International Economic Law &
the Way They Influence the System
• States
 Influence through the multilateral international economic
organizations
 Influence through state formed informal economic
groupings for consultation
 Influence through informal governmental networks (of
like minded governmental departments and agencies)
 Influence through institutions like the OECD
(representing developed country interests) & UNCTAD
(representing developing country interests)
 Influence through direct state operation in
international organizations
 Participants …Contd.
 International Economic Organizations
 Type:
 Those with jurisdictions on economic matters alone -the
Breton Woods Institutions (IMF, WTO, World Bank Group)
 Those involved in the economic field along with other
matters -the organizations in the UN system
 Modes of influence
 By setting basic international constitutional frameworks in
their respective areas: the Bretton Woods Institutions
 (Note international agreements, practices that grow to CIL,
harmonization that grows to general principles of law, soft
law,internal administrative rules, etc.)
  By playing
…..
direct legislative function in domestic
legislation: the IMF conditionality

 Common Problems
 Lack of coordination
 Undemocratic decision making
 Participants …Contd.
 Individuals & Corporate Entities
 Increasingly pronounced when
 the liberal trade focus emphasizes on individual
rights
 International agreements increasingly confer
individual rights &duties
 Multinational companies become powerful, and
 Domestic remedies for individuals in relation to
internationally arrived at standards and availability of
international dispute settlement mechanisms
increase
 Participants …Contd.
NGOs
 Advocacy for their increased participation in
international economic law in the name of
democracy, i.e.
 representation of community interests across
jurisdictions,
 competition with governments in policy analysis, &
 watchdog over governmental practices.
 But, weak participation so far in the Bretton Woods
institutions
 participation only for exchange of views and as observers
 ……….
Problems
Questions regarding their representativeness,
Still affected by the north-south divide,
NGO’s own interest and agenda that can distort
international decision making,
No need for international participation since NGOs
have opportunity to lobby their interests at the
national level
 Why is International Economic Law
Obeyed?

 Consent

 Sanction
 …….

Thank You!