SOVEREIGNITY ISSUES IN INTERNATIONAL INTERNATIONAL LAW CHAPTER-I: INTRODUCTION
Internationa Internationall economic economic law, in its widest meaning, meaning, refers to tose r!les of "!#lic "!#lic International International law wic directl$ concern economic e%canges #etween te s!#&ects of international law' Seen from tis angle, international economic law t!s co(ers) onl$ a "art, al#eit an im"ortant one, of te disci"line of "!#lic international law as a wole' Tis statement will #e !nwelcome to tose wo maintain tat international economic law is or so!ld #e a disci"line of its own, se"arate from "!#lic international law' S!c a claim ma$ #e !sef!l as a "lea to increase te n!m#er of academic "osts in te field of international law, $et, in o!r o"inion, international economic law is so closel$ em#edded in te disci"line of "!#lic international law tat te latter wo!ld #e cri""led #$ s!c a se"aration' *eacef!l relations #etween s!#&ects of international law ate, after all, to a (er$ large e%tent directl$ concerned wit economic e%canges +'
lf, on te oter and, one were to e%tend te notion of internationa internationall economic economic law e(en to all tose as"ects of international law as are indirectl$ affected #$ economic acti(ities, tis en(isag en(isaged ed new disci"l disci"line ine wo!ld wo!ld swallo swallow)! w)!" " te old disci" disci"lin linee altoget altogeter er'' Law reflects reflects te interests interests of te r!ling r!ling class and international international law, in "artic!lar, "artic!lar, reflects te interest of te most "rominent -egemonial-. "owers of te "eriod concerned' Tese interests, in t!rn, are infl!enced/ to a (er$ large e%tent #$ te aim of o#taining material gains, and t!s #$ economic considerations' e(en if te actors concerned ma$ not alwa$s #e aware of te materialistic #ac0gro!nd to ten actions, wic, ostensi#l$, ma$ a""ear "rom"ted #$ more idealistic moti(es' 1e tat as it ma$, te "resent #oo0 will deal onl$ wit te r!les of "!#lic inter)national law directl$ concerned wit economic e%canges' 2or e%am"le, "res!""osing te a!dience to #e familiar wit te general "ro#lems of self)determination and of te !se of force, we will disc!ss onl$ te rigt of economic self)determining and te !se of economic force' 3owe(er, te effect of tis red!ction of te sco"e of te #oo0 is offset #$ te necessit$ at least to to!c !"on all as"ects of international economic law' We wo!ld fail to co"e wit te realities of "resent)da$ international life, if we omitted to deal wit "enomena li0e te e%istence of m!ltinational enter"rises or of contracts concl!ded #$ States) wit nationals of oter States' Some a!tors still ma$ consider tat international law so!ld deal onl$ wit relations #etween States and "ossi#l$ 4 wit international organi5ations, t!s gi(ing "riorit$ "riorit $ to a "reconcei(ed doctrine o(er "resent realities' We intend to follow te more modern doctrine wic e%tends te categories of s!#&ects of international law so as to incl!de indi(id!als, and wic ta0es into acco!nt te "ossi#ilit$ of oter so!rces of international law tan tose en!merated in Article 67, "aragra" +, of te
+ NALSAR STU8Y 9ATERIAL ON INTERNATIONAL TRA8E LAW, *g' + :3ANA;YA :3ANA; YA NATIONAL LAW UNIVERSITY
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SOVEREIGNITY ISSUES IN INTERNATIONAL INTERNATIONAL LAW
Stat!te of te International :o!rt of
:onsideration of tese two factors ma$ "a(e te wa$ 2or te admission of new #od$ of r!les into international economic law, te so)called =le% mercatoria-' :om"arati(e law sows tat traders all o(er te world are #eginning to de(elo" !niform conditions for doing #!siness wic arc more or less c!t loose from an$ national law and enforcea#le mainl$ #$ ar#itration' T!s, te -Law 9ercant- of te 9iddle Ages seems to come ali(e again' 1$ definition, te le% mercatoria will a""l$ merel$ #etween mercants' ma$ elect to #ase teir teir relatio relations ns merel$ merel$ on te le% mercato mercatoria' ria' Non)"r Non)"rofi ofitt ma0ing ma0ing intern internatio ational nal associa associatio tions, ns, li0ewi li0ewise se desiro desiro!s !s of demons demonstrat trating ing teir teir inde"e inde"ende ndence nce from from an$ domesti domesticc law, law, cannot cannot do li0ewise' G' Van 3ee0e, sows tat te #asis of common "ractice of tese entities is too small for legal notions common to all of tem to de(elo"'
In its content, content, te le% mercatoria mercatoria does not aim to reg!late reg!late relations #etween States directl$ and t!s it does not fit into te classical notion of international law' On te oter and, #$ definition te lee mercatoria does not form "art of te nation)al law of an$ State' Yet domestic co!rts a(e re&ected te "lea tat awards #ased on mercatoria were not #ased on law and so!ld terefore #e ann!lled' +? If we e%tend te notion of s!#&ects of international law so far as to incl!de traders as s!#&ects at least of international economic law, te non)national le% mercatoria co!ld #e co!nted among te so!rces of tat law @'
Te diffic!lties in "ractice of se"arating commercial from State acti(ities are sown #$ te de(elo"ment of te e!ro)dollar mar0et' On tis mar0et' traders "lace for a limited "eriod of time amo!nts of c!rrenc$ !s!all$ United States dollars. in a #an0 o!tside of te co!ntr$ were tis c!rrenc$ is iss!ed and it is legall$ tender' Tese traders t!s create "a$ment facilities additional to tose offered #$ te an0 of a!te of te se(eral States' earning iger interest tan in te United States, is te an0 granting te loan is not o#liged to 0ee" a corres"onding interest)free de"osits wit te US 2ederal Reser(e 1oard. + Te conditions for lending e!ro)dolars E!ro) loans-. a(e a great infl!ence on te national interest ra5e' Te almost !nfettered circ!lation of (ast (ast amo! amo!nt ntss of mone$ mone$ e%erc e%ercis ises es a grea greatt infl! infl!en ence ce on te te rate rate of e%c e%can ange ge for for nati nation onal al c!rrencies'
@ NALSAR STU8Y 9ATERIAL ON INTERNATIONAL TRA8E LAW, *g' @ :3ANA;YA :3ANA; YA NATIONAL LAW UNIVERSITY
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SOVEREIGNITY ISSUES IN INTERNATIONAL LAW
1$ t!s stretcing te notion of international law in order to accommodate te facts of "resent da$ international economic life, we are again confronted Wit s!c an !nwield$ mass of material tat we are once more o#liged to ma0e a coice' 9an$ inter)State economic relations are toda$ andled witin te framewor0 of te law of te "artic!lar international law' Te law and te acti(ities of tese organi5ations, concerning e%cl!si(el$ or, inter cilia, certain fields of economic co)o"eration, arc relati(el$ well co(ered #$ monogra"s' Were tis is te case, we will limit o!rsel(es to disc!ssing merel$ tose of teir acti(ities, wic we consider most stri0ing' ;nowing, B!ite well ow s!#&ecti(e s!c coice =will a""ear, it as ne(erteless to #e made or else te "resent #oo0 wo!ld grow into m!lti)lateral treaties'
Te same reasons of s"ace "re(ent, a fortiori, an$ e%tension of te notion of international economic law to incl!de transnational economic. law, i'e', to incl!de all r!les ca"a#le of affecting !man relations across national #orders, wito!t regard to te national or international origin of s!c r!les, t!s incl!ding, e'g', national r!les of conflict of laws'
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SOVEREIGNITY ISSUES IN INTERNATIONAL LAW CHAPTER II: FACTORS OF INTERNATIONAL TRADE
Of all te economic acti(ities, it is ard to imagine one more rele(ant to te "ros"erit$ of te co!ntr$ tan international trade' International trade allows co!ntries to en&o$ goods wic te$ wo!ld not a(e #een a#le, for lac0 of indigeno!s raw materials or tecnolog$, to "rod!ce, and to earn (ital foreign e%cange #$ selling goods wic te$ are a#le to "rod!ce or man!fact!re at an ad(antage o(er oter co!ntries' Te m!t!al demand and s!""l$ for goods in t!rn stim!lates te econom$, res!lting in growt and em"lo$ment' Te fact is tat no co!ntr$ is woll$ self) s!fficient' Te mo(ement of goods generates te mo(ement of ca"ital, and ca"ital ena#les a glo#al financial s$stem to remain sta#le' Indeed, des"ite some of te diffic!lties glo#ali5ation as #ro!gt into te international trading s$stem, international trade #$ and large remains a significant 0e$ to economic s!ccess and de(elo"ment'
Te im"ortance of international trading ine(ita#l$ in(ites go(ernments and international organi5ations to want to de(elo" laws to manage and control it' Indeed, tere are man$ legal r!les, weter international, s!"ra)national or national, tat a""l$ to te "!#lic or economic as"ects of international trade' Tese ma$ incl!de, for e%am"le, instr!ments s!c as te General Agreement on Tariffs and Trade GATT., #ilateral 2ree Trade Agreements, te E!ro"ean Union Treat$, c!stoms law, etc' It is clearl$ needf!l, gi(en te "!#lic and economic im"ortance of international trade, tat s!c instr!ments are in "lace to ens!re tat factors wic distort trade or !nfairl$ arm de(elo"ing co!ntries are "ro"erl$ controlled' Tere is owe(er anoter as"ect of international trade wic deser(es no less recognition4te "ri(ate as"ects of international trade' Alto!g inter)national trade is sometimes e%"ressed in terms of trade #etween co!ntries, in realit$, te ma&orit$ of te traders are cor"orate entities or #!sinesses' Tese entities or "ersons ma0e contracts for te sale and "!rcase of goods across #orders wic te$ wo!ld li0e see recognised and enforced #$ nation states' Teir relationsi" wo!ld onl$ wor0 if oter commercial arrangements were in "lace to facilitate te cross #order sale and "!rcase of te goods' Tese "ri(ate commercial arrangements are essentiall$ s!#&ect to national law' Tis "a"er is t!s "rimaril$ concerned wit ow Englis law go(erns tese relationsi"s and transactions' In sort, te s!#&ect !nder consideration is international commerce on Englis law terms'
In "artic!lar, te "a"er will e%amine ow Englis law facilitates and enforces te international sale relationsi"' In an$ sale, it is im"erati(e for te goods to #e si""ed or :3ANA;YA NATIONAL LAW UNIVERSITY
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deli(ered' Tis is made all te more com"le% in international trade #eca!se of te distances in(ol(ed' Te goods a(e to #e trans"orted, !s!all$, #$ eiter te carrier' Te carrier wo!ld insist on a contract of carriage wit DnetD te #!$er or seller' It is terefore of some im"ortance to disc!ss tis contract in some detail' In te meantime, te seller or #!$er wo!ld wis to "rotect temsel(es against an$ ris0 of loss, damage or dela$ ca!sed to te goods as a res!lt of te distances te goods a(e to #e carried o(er' Te most con(entional form of "rotection is te ins!rance' Te law relating to ins!rance contracts reB!ires te ins!red "erson and te ins!rer to act towards eac oter in good fait, and "laces a n!m#er of conditions on te ins!red "erson #efore a claim wo!ld #e "aid o!t, gi(en tat a#!se migt arise' Oter tan te reB!irement to "a$ for te goods, tere ma$ also #e te need to raise finance for #ot te seller and #!$er. from #an0s !sing te sale contract' 3ere, an e(al!ation of te law relating to "a$ment and trade finance is necessar$' Last, #!t not least, dis"!tes ine(ita#l$ do a""en' Te #oo0 t!s e%amines te iss!e of were to s!e and wic co!ntr$Ds laws will a""l$ to te contract, in te ligt of te international element in te contracts' Tere is also te e(er im"ortant role alternati(e dis"!te resol!tion metods "la$ in el"ing commercial "arties resol(e teir dis"!tes' Te #oo0 ends wit a ca"ter co(ering different metods of non &!dicial resol!tion of dis"!tes4in "artic!lar, commercial negotiation and ar#itration'
Wat Go(erns te Relationsi"s in International Trade Wito!t del(ing into te genesis of Englis international commercial law, 6 it s!ffices to o#ser(e tat te following migt #e said to #e its main caracteristics •
to ens!re certaint$ in te reg!lation of te "artiesD rigts and o#ligations #$ ens!ring
•
te law is consistent wit "recedent and "redicta#leCF to "ro(ide s!fficient fle%i#ilit$ to te "artiesD need to do #!siness #$ "ermitting te recognition of trade c!stom and !sageF to gi(e "rimac$ to te "artiesD agreement #$ "referring not to re)write te terms of te contract wito!t s!fficient "roof of te
•
"arties "res!med intentionHF to "ro(ide an efficient s$stem for te resol!tion of commercial dis"!tes tro!g te wor0ings of te commercial co!rt, te recognition and enforcement of ar#itral
6 See :'9' Scmittoff, :ommercial Law in a :anging Economic :limate @nd edn London Sweet 9a%well, +>7+., :s + and @ for a general acco!nt of te istorical de(elo"ment of commercial law' C @ As Lord Salmon said in 9ardoif *eac :o Ltd ( Attica Sea :arriers :or" of Li#eria Te Laconia. J+>KK A':' 7H? at 7K7 -:ertaint$ is of te "rimar$ im"ortance in all commercial transaction H In E%%onmo#il Sales and S!""l$ :or" ( Te%aco Ltd J@??6 EW3: +>MC, for e%am"le, te co!rt ref!sed to allow "roof of c!stom or !sage to o(erride a contract!al cla!se tacitl$ e%cl!ding s!c c!stom or !sage' Te "ro#lem to!g is alwa$s one of constr!ction of te cla!se #!t in tat case, gi(en te commercial #ac0gro!nd, te co!rt was "ers!aded tat te cla!se 0nown as an -entire agreement- cla!se. was s!fficientl$ wide to e%cl!de c!stom and !sage'
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awards, te facilitation of oter forms of alternati(e dis"!te resol!tion incl!ding mediation, conciliation, etc'. and te recognition and enforcement of foreign &!dicial •
awardsF and to recognise te international dimension of commerce #$ te a""lication of s"ecialised r!les of conflict of laws, te admittance of "ractice and r!les of international organisations s!c as te International :am#er of :ommerce, i te UN:ITRAL. as g!iding te inter"retation and a""lication of commercial law, and te !se of foreign law as a g!ide' Te f!nctions of international commercial law are necessaril$ lin0ed to teir so!rces' One of its most im"ortant so!rces is te commercial contract' Tat sall #e te starting "oint in tis ne%t section' In t!rn, te contract can onl$ a(e e%istence and enforcea#ilit$ #eca!se it is !nder"inned #$ national law' 3owe(er, tat relationsi" #etween te contract and national law m!st not #e treated in isolation' EU and international legal infl!ences also a(e an im"act'
:ontract Were te "erformance of a d!t$ is "ro(ided for #$ contract, !nless te "ro(ision +)contradicts te law or "!#lic "olic$ of te co!ntr$, tat contract!al "ro(ision sall #e #inding as #etween te "arties' In te e%amination of te relationsi" #etween te "arties, it is terefore necessar$ to e%tract te contents of te contract and ten "ro"erl$ to constr!e tem to determine te e%tent of tat relationsi"' Te contents of te contract!al relationsi" ma$ #e fo!nd eiter in te e%"ressl$ stated terms of te contract or ma$ #e elicited #$ te co!rt from te s!rro!nding facts or legal en(ironment' Te terms of te contract m!st #e s!fficientl$ certainF in Scwe""e ( 3ar"er J@??7 EW:A :i( CC@, weter tere is certaint$ can sometimes #e a diffic!lt matter of &!dgment' Tere, in a @)+ decision, te :o!rt of A""eal eld tat te financing contract was !ncertain gi(en tat tere were no clear terms as to te amo!nt of finance so!gt, te rate or rates of interest and an$ oter consideration to #e "ro(ided, te lengt of te finance and ow re"a$ment was to #e made' In general, te co!rts wo!ld tr$ to sa(e a commercial deal as te "res!m"tion is tat tere is intention to #e legall$ #o!nd in a commercial relationsi"' Indeed, te co!rts, were a""ro"riate, wo!ld im"l$ reasona#le terms into te contract to ma0e it enforcea#le' 3owe(er, te contract also as to #e ca"a#le of #eing "erformed and tis is were te co!rts migt find te ga"s in te -contract- too ca(erno!s to fill'
E%"ress terms a. Generall$ It is c!stomar$ "ractice in international commerce for "arties +C+ to ado"t commonl$ recognised or standard terms' Tese standardised contracts are (er$ m!c te res!lt of te growt of large)scale enter"rises wit mass "rod!ction and mass distri#!tion' :3ANA;YA NATIONAL LAW UNIVERSITY
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SOVEREIGNITY ISSUES IN INTERNATIONAL LAW
According to ;estrel -Te stereot$"ed contract of toda$ reflects te im"ersonalit$ of te mar0et' It as reaced its greatest "erfection in te different t$"es of contracts !sed on te (ario!s e%canges' Once te !sef!lness of tese contracts was disco(ered and "erfected in te trans"ortation, ins!rance, and #an0ing #!siness, teir !se s"read into all oter fields of large scale enter"rise, into international as well as national trade '' ' -M
Te #enefits of !sing tese standardi5ed terms incl!de i'
As far as te trader or #!sinessman is concerned, te ris0 factor is e%tremel$ im"ortant in an$ #!siness (ent!re' 3ence wit te !niformit$ of terms and "redicta#ilit$ of conseB!ences from te contract!al arrangement #eing made "ell!cid rigt at te o!tset, e is a#le to calc!late te "recise ris0s in(ol(ed' Ta0e for e%am"le standard form ins!rance con)tracts, te commonl$ !sed terms of te co(er and e%ce"ted "erils ma0e te com"!tation of ris0s more efficient for #ot te ins!rer and te ins!red'
ii'
Standard form contracts are also !sef!l in e%cl!ding or controlling te -illogical factorof &!dicial reasoning in litigation te con(iction tat #eing codified terms will ma0e te contract so lim"id tat te co!rt or ar#itrator will a(e little coice #!t to adere to te e%"ressed terms' :larit$ in standard form contracts is no less an im"ortant factor in its a""eal to te #!siness "erson' 8ecision ma0ers entr!sted wit te tas0 of constr!ing te standard form contract can ta0e comfort in te fact tat tese terms are not no(el, #!t a(e #een addressed #$ "recedent or "ractice'
iii' i('
Te !se of standard form contracts also contri#!tes to te red!ction in cost and increase in efficienc$ of transaction' Te time and cost sa(ed from e%tensi(e negotiation and "ersonali5ed drafting of te contract are not ins!#stantial es"eciall$ in res"ect of large) scale enter"rises'
M ;estrel +>C6. :ol/ L'R' M@>' :3ANA;YA NATIONAL LAW UNIVERSITY
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SOVEREIGNITY ISSUES IN INTERNATIONAL LAW
CHAP – III: SOVEREIGNTY IN INTERNATIONAL ECONOMIC LAW
I' 1ASI: NOTIONS A. A1SOLUTE SOVEREIGNTY Te%t#oo0s often declare -so(ereign- States to #e te onl$ original s!#&ects of inter)national law' As o""osed to oter s!#&ects of international law wic deri(e teir stat!s as s!#&ects from sonic act of te original s!#&ects, tat is of States, concl!ding a treat$ to esta#lis an international organi5ation or granting to indi(id!als direct access to international instances, so(ereign States arc s!#&ects or international law #$ te mere fact of teir e%istence'
3owe(er, wen is a State -so(ereign- Te notion of so(ereignt$ was de(elo"ed in te earl$ 9iddle Ages !s lection to te claims of te Em"erors of te 3ol$ Roman Em"ire to #e te tem"oral r!lers or te glo#e, te *o"e #eing its s!"reme a!torit$ in s"irit!al matters onl$' At no time did tese claims of te Em"erors and *o"es f!ll$ corres"ond to realit$' E(en so, tese claims were resented #$ nil oter r!lers as an im"ediment to teir longing to #e te master of teir own destin$ 4 a longing, wic tese r!lers sare wit most indi(id!als, weter "$sical or &!ridical, O""osed as it was to claims to an o(erreacing im"erial a!torit$, so(ereignt$ co!ld onl$ #e a#sol!te 4 a r!ler eiter)is te master a is own destin$, recogni5ing no#od$ on tis eart as It is s!"eriors or e is not' A so(ereign r!ler, master of is own destin$, cannot #e s!#&ected to r!les made and enforced #$ oters, ence e m!st #e freed from te o#ser(ance of te law ) "rince"s legi#!s sol!t!s'
#. RELATIVE SOVEREIGNTY AN8 INTER8E*EN8EN:E It was te (er$ "!r"ose of te doctrine of so(ereignt$ to allow also oter r!lers tan te Em"eror to #e te masters of teir own destinies, 3owe(er, as soon as tese (ario!s so(ereigns entered into relations wit eac oter, tere ad to #e some m!t!all$ recogni5ed r!les go(erning tese relations' If a r!ler, rel$ing on is claim to #e te master of is own destin$, wo!ld insist on determining for imself, wat tese r!les so!ld #e, tere are onl$ two "ossi#ilities' In te !nli0el$ case tat te oter r!lers wo!ld recogni5e is claim, te$ wo!ld recogni5e im as teir so(ereign' So!ldF owe(er, e(er$ r!ler !"old is claim to #e so(ereign to te e%tent tat e can esta#lis is own r!les for is relations wit is fellow)so(ereigns, fl! reg!lation of tese relations co!ld co!nt on general acce"tance'
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Yet, te States on tis glo#e are in man$ wa$s de"endent on eac oter' S!c interde"endence) reB!ires te e%istence of r!les concerning inter)State relations' Tese r!les cannot #e tose made #$ a single State' If e(er$ State claimed to ma0e s!c to s!c r!les ten ine(ita#le non)acce"tance #$ oter States wo!ld lead to anarc$' 1$ necessit$, r!les on inter) State relations can onl$ #e r!les recogni5ed #$ all States "artici"ating in tese relations, tat is, in (iew of te "resent da$ world)wide inter)de"endence, #$ all States of te glo#e' If a State was to #e allowed to disregard tese r!les of in0in+M?+ml law, in (iew of its claim to #e te master of its own destin$, tere wo!ld no longer #e an$ relia#le #asis for te inter)state relation reB!ired #$ te fact of te interde"endence of te se(eral so(ereign States'
Recognition of tese facts ad led States to discard te notion of a#sol!te so(ereignt$ in fa(o!r of tat of relati(e so(ereignt$' An$ State now is said to e so(ereign, if its acts me not s!#&ect to an$ oter l!tes tan tose of international law' Te a#sence of s!c -oter r!les-, in general, is tested mainl$ #$ Dformalistic criteria' Interde"endence #eing as strong as it is, not e(en te two s!"er)"owers co!ld claim to #e tr!l$ inde"endent of eac oter, if inde"endence and so(ereignt$ wo!ld #e determined strictl$ according to material criteria' Onl$ were a""lication of formalistic criteria wo!ld lead to a #latant contradiction wit realit$ wo!ld te claim of a State to #e so(ereign fail to #e generall$ acce"ted' S!c an e%ce"tional sit!ation as arisen for, e%am"le in res"ect to te claims of 9anc!ria and :roatia +>C+)+>CH. to #e so(ereign' Tese -"!""et States- failed to o#tain general recognition !s so(ereign States'D
c. SOVEREIGN EUALITY It is te (er$ essence of so(ereignt$ tat no State claiming to #e so(ereign can recogni5e anoter State as a(ing legal a!torit$ o(er it' According to te doctrine of relati(e so(ereignt$, all so(ereign States terefore m!st #e eB!al #efore international law' 3owe(er, ere as elsewere, eB!alit$ ma$ #e !nderstood in different wa$s'
2ormal eB!alit$ treats all s!#&ects of law in te same manner' Tis eB!alit$ is meant wen Article @, "aragra" +, of te United Nations :arter declares -te Organi5ation is #ased on te "rinci"le of so(ereign eB!alit$ of all its mem#ers-' As a conseB!ence (oting in te GeneralD Assem#l$ follows te -one State, one (ote- r!le' t @- Tere is no cance tat weigted (oting will re"lace tis r!le,+@MC as te smallest mem#er States contri#!ting onl$ @,HC to te UN #!dget,+@M# $et constit!ting te two)tirds ma&orit$ reB!ired for (otes on im"ortant matters, co!ld "re(ent s!c a cange'
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SOVEREIGNITY ISSUES IN INTERNATIONAL LAW
3owe(er confronted wit te ;asse#a!m Amendment,+@Mc ma0ing contin!ed US s!""ort to international organi5ations de"end on greater US infl!ence in #!dgetar$ rnattersi@- a com"romise was fo!nd' Under a gentlemenDs agreement te UN General Assem#l$, wen ado"ting te #!dget on te -one State, one (ote- #asis' will follow te recommendation of te :ommittee for *rogramme and :oordination :*:., were decisions will a(e to #e ta0en #$ consens!s'
3owe(er, eB!alit$ ma$ also #e !nderstood FIs material eB!alit$, granting eB!al treatment onl$ to s!#&ects, wic are materiall$ eac oterDs eB!als, according to a criterion cosen in ad(ance' In international law, te criterion for material eB!alit$ of States can e, inter cilia, teir "o"!lation, si5e, gross national "rod!ct or militar$ "ower'
SOVEREIGNTY, INTER8E*EN8EN:E, AN8 T3E STATE
)
It
as
#ecome
common"lace to arg!e tat B!alitati(e canges in te glo#al econom$ a(e wea0ened te a#ilit$ of states to "!rs!e a!tonomo!s "olicies 4 or a(e at least mar0edl$ raised te costs of doing so'K International dr!g traffic0ing is a common"lace e%am"le' States ma$ "roi#it narcotics, #!t in a glo#ali5ed, integrated, and o"en econom$ te$ cannot effecti(el$ 0ee" tem from entering teir #orders' Li0ewise wit glo#al "!#lic goods of te sort re"resented #$ stratos"eric o5one de"letion no state can "rotect itself from a deteriorating o5one la$er, nor can an$ state single) andedl$ sa(e te o5one la$er' Tese sorts of effects and e%ternalities in t!rn create incenti(es for states to coo"erate tro!g international instit!tions'7 Te standard arg!ment a#o!t te so(ereignt$ im"lications of tis "rocess as #een addressed a#o(e' Te alternati(e conce"tion of so(ereignt$ I e%"lore in tis "art draws on tis #road transformation in te glo#al "olitical econom$ to instead s!ggest tat so(ereignt$ is ena#led rater tan wea0ened #$ tese coo"erati(e efforts'> As one "rominent scolar "!ts it, Dinterde"endence does indeed callenge te effecti(eness of "!rel$ national "olic$, #!t not te formal so(ereignt$ of states ''' on te wole, international instit!tions reinforce rater tan !ndermine formal state so(ereignt$'+? Tis
K It is now a "latit!de tat te a#ilit$ of go(ernments to attain teir o#&ecti(es tro!g indi(id!al action as #een !ndermined #$ international "olitical and economic interde"endence'D ;eoane, +>>6, a#o(e at >@' See also Ro#ert ?' ;eoane, D3o##esDs 8ilemma and Instit!tional :ange in World *olitics So(ereignt$ in International Societ$D in 3' 3' 3olm and G' Sorenson eds., Wose World Order Une(en Glo#ali5ation and te End of te :old War +>>H.' New Yor0 Times col!mnist Tom 2riedman coined te widel$)B!oted "rase DGolden Strait&ac0etD to descri#e tis "enomenon' Tomas 2riedman, Te Le%!s and te Oli(e Tree Understanding Glo#ali5ation LO: Ancor 1oo0s, +>>>., :' M' 7 ;al Ra!stiala, DLaw, Li#erali5ation, and International Narcotics Traffic0ingD, NYU <' IntDl L' and *olic$ +>>>.' > Edward *arson, *rotecting te O5one La$er Science and Strateg$ O%ford O%ford Uni(ersit$ *ress, @??6.'
+? ;eoane, +>>6 at >+' :3ANA;YA NATIONAL LAW UNIVERSITY
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#road conce"tion of so(ereignt$ reinforcement as elsewere #een termed Dte new so(ereignt$D'++ In te words of two leading "ro"onents Te largest and most "owerf!l states can sometimes get teir wa$ tro!g seer e%ertion of will, #!t e(en te$ cannot acie(e teir "rinci"al "!r"oses 4sec!rit$, economic well)#eing, and a decent le(el of amenit$ for teir citi5ens 4wito!t te el" and coo"eration of man$ oter "artici"ants in te s$stem ''' Tat te contem"orar$ international s$stem is interde"endent and increasingl$ so is not news' O!r arg!ment goes f!rter' It is tat, for all #!t a few of self)isolated nations, so(ereignt$ no longer consists in te freedom of states to act inde"endentl$, in teir "ercei(ed self)interest, #!t in mem#ersi" in good standing in te regimes tat ma0e !" te s!#stance of international life' To #e a "la$er, a state m!st s!#mit to te "ress!res tat international reg!lations im"ose ''' So(ereignt$, in te end, is stat!s 4 te (indication of te stateDs e%istence as a mem#er of te international s$stem'+@ Te conce"t of a Dnew so(ereignt$D #!ilds on a recognition of te man$ canges in te international s$stem and in domestic "olitics in te twentiet cent!r$'
Te 0e$ cange is increasing interde"endence te rise of =glo#ali5ationD, Dcom"le% interde"endenceD, and a raft of no(el trans #o!ndar$ and common "ro#lems, s!c as stratos"eric o5one de"letion'+6 9ore and more, states cannot De%ert effecti(e s!"remac$ o(er wat occ!rs witin teir territoriesD'+C Te #road "oint is tat tese de(elo"ments, wic are now dee"l$ em#edded, "rofo!ndl$ intertwine te interests and fort!nes of states and societies' States can no longer fr!itf!ll$ act a!tonomo!sl$, if te$ e(er co!ld' Or, more "rofo!ndl$, most states no longer desire com"lete a!tonom$ #eca!se a!tar0$ cannot "ro(ide tem wit te goods and o!tcomes te$ and teir societies now reB!ire' Te latter form!lation "oints toward a second, closel$ related cange, one "artic!lar to te "ostwar democratic order te sift in state)societ$ relations in ad(anced ind!strial democracies' Tis sift concerns te nat!re of te economic and social order and te stateDs role witin it' *olitical a!torit$ re"resents a f!sion of "ower and ++ A#ram :a$es and Antonia 3andler :a$es, Te New So(ereignt$ :om"liance wit International Reg!lator$ Agreements :am#ridge, 9A 3ar(ard Uni(ersit$ *ress, +>>H.' See also Antonio *ere5, =Wo ;illed So(ereignt$ Or :anging Norms :oncerning So(ereignt$ in International LawD, +C Wisc' IntDl L <' CM6 +>>6. re(iewing :a$es and :a$es, a#o(e.' +@ :a$es and :a$es, id, at @K' +6 Te conce"t of com"le% interde"endence sares some similarities wit glo#ali5ation Dte notion of glo#ali5ation differs from tat of interde"endence in tat it refers to B!alitati(el$ different conditions' Wereas te notion of interde"endence refers to a growing sensiti(it$ and (!lnera#ilit$ #etween se"arate !nits, glo#ali5ation refers to te merging of !nits ''' ne(erteless, te ca!sal mecanisms mentioned in connection wit te dri(ing forces and te ongoing cange in world "olitics are B!ite similar in #ot fields'D 9icael P!rn, D2rom Interde"endence to Glo#ali5ationD, in Walter :arlsnaes, Tomas Risse, and 1et A' Simmons, Te 3and#oo0 of International Relations London Sage, @??@., at @6H' See also Ro#ert ;eoane and 7>.F *ili" G' :ern$, DGlo#ali5ation and te :anging Logic of :ollecti(e ActionD, C> International Organi5ation A!t!mn +>>H.' +C ;eoane +>>H a#o(e n H> at +KM)KK'
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legitimate social "!r"ose'+H Te legitimate social "!r"oses for wic state "ower co!ld #e wielded canged in te West and elsewere. after te Second World War' Te "ostwar international economic order reflected wat
+H M7 76.' See also Anne) 9arie 1!rle$ Sla!gter., DReg!lating te WorldD, in >6.' Se arg!es tat m!c of te "ostwar m!ltilateral s$stem of international instit!tions can #e !nderstood as a "ro&ection of te New 8eal reg!lator$ state' M> Edward 3allett :arr, Te Twent$ YearsD :risis, +>+>) +>6>,) An Introd!ction to te St!d$ of International Relations London 9acmillan and :o, +>6>.' K? Tis is not to sa$ !niforml$F tere is considera#le (ariation in te str!ct!re of ca"italism and te role of state in te ma&or economies of te world' See, e'g', *eter 3all and 8a(id Sos0ice eds., Te Varieties of :a"italism Te Instit!tional 2o!ndations of :om"arati(e Ad(antage @??+.' K+ DIn s!m, efforts to constr!ct international economic regimes in te interwar "eriod failed not #eca!se of te lac0 of a egemon' Te$ failed #eca!se, e(en ad tere #een a egemon, te$ stood in contradiction to te transformation of it in te mediating role of te state #etween mar0et and societ$, wic altered f!ndamentall$ te social "!r"ose of domestic and international a!torit$'D See R!ggie, a#o(e n C@, at @?7' K@ See :a$es and :a$es, a#o(e, at @K'
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Tis order was m!ltilateral in caracter, so as to a(oid te r!ino!s economic !nilateralism of te interwar "eriod'+M 1!t, !nli0e te old nineteent)cent!r$ gold standard li#eralism, it was "redicated !"on domestic inter(ention into te econom$' Tere are man$ arg!ments a#o!t te transformation to em#edded li#eralism' Te im"ortant "oint ere is sim"l$ tat societal o#&ecti(es and e%"ectations a#o!t te go(ernmentDs res"onsi#ilit$ to ens!re domestic economic and "olitical sta#ilit$ ad canged mar0edl$'- Tis transformation meant tat as a "olitical matter onl$ certain 0inds of international legal regimes co!ld #e s!stained' It also meant tat tose legal regimes were now im"ortant (eicles for states to f!lfill teir new social "!r"oses' Lin0ing tese arg!ments togeter el"s ma0e sense of te claim tat international instit!tions 4 in te contem"orar$ conte%t 4 are in fact te medi!m tro!g wic so(ereignt$ is created or "racticed rater tan a restraint !"on it' In tis (iew, te Donl$ wa$ most states can reali5e and e%"ress teir so(ereignt$ is tro!g "artici"ation in te (ario!s regimes tat reg!late and order te international s$stemD' Isolation from te increasingl$ dense international conte%t Dmeans tat te stateDs "otential for economic growt and "olitical infl!ence will not #e reali5edD' +K
2ar from #eing treats to so(ereignt$, international instit!tions o!gt to #e !nderstood as instr!ments tat strengten or instantiate state so(ereignt$, gi(en a "artic!lar, istoricall$) contingent contem"orar$ state of te world' Indeed, as one scolar arg!es, gi(en te c!rrent world economic s$stem Dte United States can #etter "romote economic growt, "ros"erit$, and &o# creation tro!g international coo"eration, s"ecificall $ te WTO, tan it can acting alone' ''' United States so(ereignt$ is not diminised #$ s!c "artici"ation, and te acco!nta#ilit$ of democraticall$ elected officials to te "eo"le is not red!ced'+7 Gi(en a world in wic largel$ irre(oca#le canges in te glo#al econom$ a(e destro$ed te a#ilit$ of states to "ros"er !nder a!tarc$, and in wic states m!st acie(e social o#&ecti(es to #e legitimate, international instit!tions are now te "rimar$ means #$ wic states ma$ "ros"er and acie(e social o#&ecti(es' :onseB!entl$, te$ are te "rimar$ means #$ wic states ma$ reassert or e%"ress teir so(ereignt$' Instit!tions acti(el$ aid states in tis reassertion of so(ereignt$'+M Edward 3allett :arr, Te Twent$ YearsD :risis, +>+>)+>6>,) An Introd!ction to te St!d$ of International Relations London 9acmillan and :o, +>6>.' K? Tis is not to sa$ !niforml$F tere is considera#le (ariation in te str!ct!re of ca"italism and te role of state in te ma&or economies of te world' See, e'g', *eter 3all and 8a(id Sos0ice eds., Te Varieties of :a"italism Te Instit!tional 2o!ndations of :om"arati(e Ad(antage @??+.' K+ DIn s!m, efforts to constr!ct international economic regimes in te interwar "eriod failed not #eca!se of te lac0 of a egemon' Te$ failed #eca!se, e(en ad tere #een a egemon, te$ stood in contradiction to te transformation of it in te mediating role of te state #etween mar0et and societ$, wic altered f!ndamentall$ t e social "!r"ose of domestic and international a!torit$'D See R!ggie, a#o(e n C@, at @?7' K@ See :a$es and :a$es, a#o(e, at @K'
+K Id' +7 >M., at +?@>)6?' :3ANA;YA NATIONAL LAW UNIVERSITY
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Tis is a f!ndamentall$ transformationalist arg!ment it rests on te claim tat #ot te international s$stem and state)societ$ relations were transformed #$ e(ents of te twentiet cent!r$' As a res!lt, te nat!re of so(ereignt$ itself is said to #e transformed' Wate(er its oter (irt!es, tis arg!ment rigtl$ igligts te im"ortance of economic and "olitical conte%t for conce"tions of so(ereignt$' So(ereignt$, in oter words, is an e(ol!tionar$ rater tan a static conce"t' Te ancient Gree0 #elief in te (irt!es of te small cit$)state was "artl$ "redicated on a "artic!lar world' In tis world, nearl$ all "olitical decisions co!ld not onl$ #e made, #!t #e made effecti(el$, witin te s"ere of te cit$)state' As a res!lt, instit!tions a#o(e te state were #asicall$ f!nctionall$ s!"erfl!o!s' In a igl$ interde"endent world, owe(er, te dis"arit$ #etween "olitical #o!ndaries and economic or ecological #o!ndaries renders effecti(e self) go(ernment igl$ "ro#lematic on a "!rel$ national scale, e(en for large and "o"!lo!s nations' Effecti(e go(ernment ma$ now not onl$ tolerate #!t reB!ire some instit!tions a#o(e te state' It is tis "rocess of rising interde"endence leading to decreased national go(ernance ca"acit$ tat as !ndermined national "olic$ res"onses' Tis 4 along wit a sift to more demands #$ citi5ens !"on te state 4 !nder"ins te conce"t of te new so(ereignt$ and gi(es it its transformationalist fla(or' A corollar$ of tis arg!ment is tat so(ereignt$ in tis new sense is most "rono!nced in te li#eral West' It is te states of te West, tigtl$ integrated economicall$ and closel$ tied "oliticall$, tat #est em#od$ te conce"t of te new so(ereignt$' Te EU re"resents te a"oteosis of tis Dlogic of te WestD' Tere is also an im"licit re"resentational element in tis conce"tion of so(ereignt$' On te one and, te idea of a Dnew so(ereignt$D is "redicated on te satisfaction of domestic "references, wic im"lies some "rinci"al)agent relationsi" #etween societ$ and state' On te oter and, #$ arg!ing tat =so(ereignt$, in te end, is stat!s 4 te (indication of te stateDs e%istence as a mem#er of te international s$stemD, "ro"onents s!ggest tat societal demands fare secondar$ wat matters for so(ereignt$ is "artici"ation in international societ$'
A state is so(ereign wen it is an acti(e "la$er in te s$stem, rater tan an a!tonomo!s and !nfettered actor' Tis line of arg!ment, !niB!el$ among te claims e%amined in tis article, to!ces on te relational as"ects of so(ereignt$' It igligts te im"ortance of so(ereignt$ as a stat!s tat oter states in te international s$stem s!""l$' An entit$ can declare itself a state, "rint mone$, and own territor$, #!t if te rest of te states do not recogni5e it as s!c it lac0s so(ereignt$' Te foc!s on te relational as"ects of stateood is e(ocati(e of te Englis Scool of international relations teor$, wic #roadl$ arg!ed tat states li(e in an Qanarcical societ$' Te canonical Englis Scool definition of an international societ$ is a gro!" of states tat :3ANA;YA NATIONAL LAW UNIVERSITY
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Qconcei(e temsel(es to #e #o!nd #$ a common set of r!les in teir relations wit one anoter, and sare in te wor0ing of common instit!tions' States e%ist "rior to international societ$F international societ$ is a s$stem tat wa%es and wanes' One can inter"ret te new so(ereignt$ arg!ment tro!g tis "rism to mean tat, !nder c!rrent circ!mstances glo#ali5ation, economic interde"endence., an international societ$ e%ists' Gi(en an interde"endent world, a state tat fails to #e an acti(e "artici"ant in international societ$ fails to #e f!ll$ so(ereign' It will not #e recogni5ed as s!c #$ its "eers'
Te macro canges in te international s$stem 4 s!c as increasing glo#ali5ation or interde"endence 4 tat I a(e t!s far stressed are of co!rse not sim"l$ e%ogeno!sl$) determined' International economic instit!tions a(e sa"ed and fostered te rise of interde"endence e(en as te$ el" to manage and cannel it' In tis sense international instit!tions "la$ a d!al role' Te$ are tools tat states !se to reassert and regain so(ereignt$F $et te$ also "romote "rocesses tat el" erode state a!tonom$ and "ower' In closing, it is im"ortant to !nderscore tat te idea of a new so(ereignt$ does not directl$ address te acco!nta#ilit$ concerns tat animate m!c of te contem"orar$ de#ate o(er international economic instit!tions' Tis de#ate is often a#o!t deficits in te "rocesses of glo#al go(ernance in creating increasingl$ "owerf!l international instit!tions to el" !s acie(e te aims we desire, a(e we armed te democratic (al!es tat la$ at te eart of te modern li#eral state Reconce"t!ali5ing so(ereignt$ as mem#ersi" in good standing in te societ$ of states does not directl$ address tis iss!e' Te mo(e to international instit!tions can #e done in wa$s tat are more or less acco!nta#le, more or less trans"arent and o"en' 3owe(er, if state legitimac$ is "artl$ gro!nded in effecti(eness, effecti(e international economic instit!tions ma$ #e legitimate 4 #eca!se te$ are instr!mentall$ !sef!l 4 e(en to!g te$ lac0 acco!nta#ilit$ in te !s!al sense' A domestic analog$ is central #an0 inde"endence'. Of co!rse, it is not clear tat a lac0 of democratic "edigree correlates wit greater effecti(eness, to!g in te trade conte%t tis ma$ well #e tr!e' In sort, "ro"onents of a new so(ereignt$ claim tat, state)societ$ relations a(e #een transformed in a manner tat is significant for conce"t!ali5ations of so(ereignt$'
8emocratic go(ernance entails res"onsi(eness to growing societal demands' Wile states co!ld once #e relati(el$ a!tarcic, toda$ interde"endence and glo#ali5ation ma0e it im"ossi#le for states, acting alone, to "ro(ide te "olic$ o!tcomes tat "!#lics desire' So(ereignt$ in its traditional a!tarcic sense is t!s lost #eca!se of #road canges in te international s$stem as well as #road canges in te demands of citi5ens' International instit!tions, far from a treat to :3ANA;YA NATIONAL LAW UNIVERSITY
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so(ereignt$, are now said to #e te means #$ wic states satisf$ tese new and more e%tensi(e demands' International instit!tions are, "arado%icall$, sa(iors of so(ereignt$'
SOVEREIGNTY AN8 *U1LI: :3OI:E Te second strand of arg!ments a#o!t strengtening so(ereignt$ tro!g glo#al go(ernance ta0es a B!ite different tac0, to!g tere is significant o(erla" in some res"ects' Tere are two (ariants of tis arg!ment' 1ot #!ild on "!#lic coice teor$, and ence #ot #egin wit te "res!m"tion tat "olitics and law are ar enas of str!ggle in wic actors see0 "ri(ate gain' +> *!#lic coice teorists a(e ill!strated te man$ wa$s in wic "!#lic instit!tions ma$ #e !sed for "ri(ate ends' *!#lic coice anal$5es "olitical actors and acti(ities !sing te same set of tools and ass!m"tions de"lo$ed for economic actor and acti(itiesF te teor$ (iews "olitics and economics as sared "!rs!its, teoreticall$ and em"iricall$' *!#lic coice teor$ D"res!mes tat go(ernmental "olic$ reflects te eB!ili#ri!m o!tcome of a ri(alro!s "rocess among com"eting interest gro!"s wo tr$ to ca!se go(ernmental "olic$ to f!rter teir own ends' @? As a res!lt, te state is a normati(el$ "ro#lematic entit$ 4 "era"s necessar$ to reali5e certain aims of a good societ$, #!t igl$ "rone to rent)see0ing and ca"t!re' To!g tis lin0 is not alwa$s made e%"licit, traditional "!#lic coice models of legislation im"l$ tat as rent)see0ing di(erts reso!rces and "olicies toward s"ecial interests, democratic "rocesses 4 and "o"!lar so(ereignt$ 4 are !ndermined' Rater tan act as faitf!l agents, state actors will !se state "ower for teir own "ersonal ends to enance teir "ower or sec!re "ri(ate goods' *!#lic coice teor$ s!ggests tat international economic instit!tions ma$ enance rater tan erode national so(ereignt$ in two different wa$s' 2irst, international economic instit!tions can stri" certain "olic$ coices awa$ from te state, tere#$ stri""ing tem awa$ from te rent)see0ing "ri(ate actors tat acc!m!late aro!nd state "ower li0e so man$ mots to a flame' Te res!lt is "olic$ tat is, co!nter)int!iti(el$, more faitf!l to "o"!lar "references' So(ereignt$ is strengtened #eca!se citi5ens are !nderstood in tis arg!ment to #e te re"ositor$ of so(ereignt$' Te second arg!ment claims tat reg!lator$ officials !se international economic instit!tions to "reser(e so(ereignt$ 4 and teir "ersonal and instit!tional "ower 4 in te face of e%ogeno!s and desta#ili5ing cange in te international
+> Tis can #e said of rational coice teories in te social sciences generall$F See, e'g', 8onald *' Green and Ian Sa"iro, *atologies of Rational :oice Teor$ New 3a(en Yale Uni(ersit$ *ress, +>>C., c +' @? Enrico :olom#arto and >M., at >6+' 2or a general o(er(iew see 8aniel A' 2ar#er and *ili" *' 2ric0e$, Law and *!#lic :oice A :ritical Introd!ction :icago Uni(ersit$ of :icago *ress, +>>+.' *!#lic coice teor$ in te international trade conte%t is descri#ed in ;ennet A##ott, DTe Trading NationDs 8ilemmaD, @M 3ar(' Intl L' <' +>7H.'
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s$stem' In oter words, tere is #ot an DinternalD and an De%ternalD treat to so(ereignt$ tat international instit!tions ma$ ward against'
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:ON:LUSION At te o!tset of tese "a"ers, it can #e arg!ed tat international trade and international economic acti(ities generall$, a(e #een o(er loo0ed #$ te field of te interna tional law' Tis is #eca!se te (er$ notion of stateood itself intended to marginali5e acti(it$ tat was not "ercei(ed to #e te acti(it$ of te so(ereign state, or acti(it$ of so(ereign states, or acti(it$ tat was seen as occ!rring inde"endentl$ of tose States'
It can also #e s!ggested tat tere are two models for (iewing international trade law' One "ercei(es international trade law in terms of te economic logic of com"arati(e ad(antage' Tis is te !nderl$ing rationale for te international trading regime and for te law on wic it is #ased' And m!c of international trade law is from te "ers"ecti(e of te nation state' In tis ligt international trade law can #e (iewed as res"onding to te e%igencies of so(ereignt$' It reflects States e%ercising te a!torit$ o(er areas of domestic &!risdiction' Tis, too "ro(ides a wa$ of !nderstanding certain areas of international trade law'
Alto!g #ot of tese models "ro(ide an insigt into international trade law, in fact te former is gaining more gro!nd at te e%"ense of te latter' Tat is, tere as #een a stead$ encroacment of te disci"lines of international trade law into areas tat migt oterwise a(e #een considered to #e witin te domestic &!risdiction of states' And, at te same time, tere as #een an encroacment of international law' Tis red!ction in te domestic &!risdiction of States as gone in and wit an increasing glo#ali5ation of economic acti(it$' Te "resent)da$ realit$ of an international econom$ caracteri5ed #$ increasing cross #order mo(ement of te factors of "rod!ction reB!ire a f!ndamental retin0ing of te rele(ance or e(en te e%istence of an$ idea of economic so(ereignt$'
Te idea tat te so(ereignt$ is no longer wat it once migt a(e #een is not new to tose in te fields of "olitical econom$ and international relations' As *rofessor S!san Strange as written Tere is world econom$ and a world societ$, #!t territorial states still claim a so(ereignt$ tat te$ are not, for te most "art, ca"a#le of e%ercising as te$ !sed @+' In sort, te traditional wa$ in wic we a(e (iewed States and "ercei(ed teir roles and f!nctions ma$ now a(e to #e reassessed'
@+ Te 8efecti(e State, +>>H. +@C 8aedal!s HH at K?' :3ANA;YA NATIONAL LAW UNIVERSITY
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One conseB!ence ma$ #e tat we a(e to tin0 of states not &!st in terms of territor$, "o"!lation and ca"acit$ to enter into international relations, #!t also in terms of teir f!nctions in res"ect of enancing economic welfare'
1!t tis im"lies, some limitations as well' Te notion of so(ereignt$, te idea of "lenar$ &!risdiction and control, does not fit well in te economic field' And tis is a conseB!ence of wat I a(e descri#ed as glo#ali5ation, were#$ economic acti(it$ is no longer local or national, and economic effects witin states are often te conseB!ence of actions or decisions ta0en o!tside its #orders o(er wic it as no effecti(e control' It is also conseB!ence of te disci"lines tat a(e #een steadil$ increasing !nder te framewor0 of te GATT and now are em#odied in te WTO' Tese disci"lines, as we a(e seen, reac into areas tat migt oterwise #e regarded witin te domestic &!risdiction of states' Economic so(ereignt$ e%ists neiter in a "ractical nor a legal sense'
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BIBLIOGRAPHY Debashis
Chakraborty & Amir Ullah Khan: The Wto
Deadlocked: Understanding the Dynamics of International Trade, Sage India, rint !""# etros C$ %aroidis & Alan '$ Sykes, The WT' And International Trade (a) * Dis+te Settlement, -d)ard -lgar blishing, !"". /A(SA0, STUD1 %AT-0IA( '/ I/T-0/ATI'/A( T0AD- (AW
I/T-0/-T S'U0C-S )))$la)teacher$net
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SOVEREIGNITY ISSUES IN INTERNATIONAL LAW
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