ITL - SOVEREIGN.docx

SOVEREIGNITY ISSUES IN INTERNATIONAL INTERNATIONAL LAW CHAPTER-I: INTRODUCTION

Internationa Internationall economic economic law, in its widest meaning, meaning, refers to tose r!les of "!#lic "!#lic International International law wic directl$ concern economic e%canges #etween te s!#&ects of international law' Seen from tis angle, international economic law t!s co(ers) onl$ a "art, al#eit an im"ortant one, of te disci"line of "!#lic international law as a wole' Tis statement will #e !nwelcome to tose wo maintain tat international economic law is or so!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 te n!m#er of academic "osts in te field of international law, $et, in o!r o"inion, international economic law is so closel$ em#edded in te disci"line of "!#lic international law tat te 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%canges +'

lf, on te oter and, one were to e%tend te notion of internationa internationall economic economic law e(en to all tose as"ects of international law as are indirectl$ affected #$ economic acti(ities, tis en(isag en(isaged ed new disci"l disci"line ine wo!ld wo!ld swallo swallow)! w)!" " te old disci" disci"lin linee altoget altogeter er'' Law reflects reflects te interests interests of te r!ling r!ling class and international international law, in "artic!lar, "artic!lar, reflects te interest of te most "rominent -egemonial-. "owers of te "eriod concerned' Tese interests, in t!rn, are infl!enced/ to a (er$ large e%tent #$ te aim of o#taining material gains, and t!s #$ economic considerations' e(en if te actors concerned ma$ not alwa$s #e aware of te materialistic #ac0gro!nd to ten actions, wic, ostensi#l$, ma$ a""ear "rom"ted #$ more idealistic moti(es' 1e tat as it ma$, te "resent #oo0 will deal onl$ wit te r!les of "!#lic inter)national law directl$ concerned wit economic e%canges' 2or e%am"le, "res!""osing te a!dience to #e familiar wit te general "ro#lems of self)determination and of te !se of force, we will disc!ss onl$ te rigt of economic self)determining and te !se of economic force' 3owe(er, te effect of tis red!ction of te sco"e of te #oo0 is offset #$ te necessit$ at least to to!c !"on all as"ects of international economic law' We wo!ld fail to co"e wit te realities of "resent)da$ international life, if we omitted to deal wit "enomena li0e te e%istence of m!ltinational enter"rises or of contracts concl!ded #$ States) wit nationals of oter States' Some a!tors still ma$ consider tat international law so!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 te more modern doctrine wic e%tends te categories of s!#&ects of international law so as to incl!de indi(id!als, and wic ta0es into acco!nt te "ossi#ilit$ of oter so!rces of international law tan tose en!merated in Article 67, "aragra" +, of te

+ NALSAR STU8Y 9ATERIAL ON INTERNATIONAL TRA8E LAW, *g' + :3ANA;YA :3ANA; YA NATIONAL LAW UNIVERSITY

+

SOVEREIGNITY ISSUES IN INTERNATIONAL INTERNATIONAL LAW

Stat!te of te International :o!rt of
:onsideration of tese two factors ma$ "a(e te wa$ 2or te admission of new #od$ of r!les into international economic law, te so)called =le% mercatoria-' :om"arati(e law sows tat traders all o(er te world are #eginning to de(elo" !niform conditions for doing #!siness wic arc more or less c!t loose from an$ national law and enforcea#le mainl$ #$ ar#itration' T!s, te -Law 9ercant- of te 9iddle Ages seems to come ali(e again' 1$ definition, te le% mercatoria will a""l$ merel$ #etween mercants' ma$ elect to #ase teir teir relatio relations ns merel$ merel$ on te 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 teir teir inde"e inde"ende ndence nce from from an$ domesti domesticc law, law, cannot cannot do li0ewise' G' Van 3ee0e, sows tat te #asis of common "ractice of tese entities is too small for legal notions common to all of tem to de(elo"'

In its content, content, te le% mercatoria mercatoria does not aim to reg!late reg!late relations #etween States directl$ and t!s it does not fit into te classical notion of international law' On te oter and, #$ definition te lee mercatoria does not form "art of te nation)al law of an$ State' Yet domestic co!rts a(e re&ected te "lea tat awards #ased on mercatoria were not #ased on law and so!ld terefore #e ann!lled' +? If we e%tend te notion of s!#&ects of international law so far as to incl!de traders as s!#&ects at least of international economic law, te non)national le% mercatoria co!ld #e co!nted among te so!rces of tat law @'

Te diffic!lties in "ractice of se"arating commercial from State acti(ities are sown #$ te de(elo"ment of te e!ro)dollar mar0et' On tis 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 te co!ntr$ were tis c!rrenc$ is iss!ed and it is legall$ tender' Tese traders t!s create "a$ment facilities additional to tose offered #$ te an0 of a!te of te se(eral States' earning iger interest tan in te United States, is te an0 granting te loan is not o#liged to 0ee" a corres"onding interest)free de"osits wit te US 2ederal Reser(e 1oard. + Te conditions for lending e!ro)dolars E!ro) loans-. a(e a great infl!ence on te national interest ra5e' Te 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 te te rate rate of e%c e%can 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

@

SOVEREIGNITY ISSUES IN INTERNATIONAL LAW

1$ t!s stretcing te notion of international law in order to accommodate te facts of "resent da$ international economic life, we are again confronted Wit s!c an !nwield$ mass of material tat we are once more o#liged to ma0e a coice' 9an$ inter)State economic relations are toda$ andled witin te framewor0 of te law of te "artic!lar international law' Te law and te acti(ities of tese organi5ations, concerning e%cl!si(el$ or, inter cilia, certain fields of economic co)o"eration, arc relati(el$ well co(ered #$ monogra"s' Were tis is te case, we will limit o!rsel(es to disc!ssing merel$ tose of teir acti(ities, wic we consider most stri0ing' ;nowing, B!ite well ow s!#&ecti(e s!c coice =will a""ear, it as ne(erteless to #e made or else te "resent #oo0 wo!ld grow into m!lti)lateral treaties'

Te same reasons of s"ace "re(ent, a fortiori, an$ e%tension of te 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, wito!t regard to te national or international origin of s!c r!les, t!s incl!ding, e'g', national r!les of conflict of laws'

:3ANA;YA NATIONAL LAW UNIVERSITY

6

SOVEREIGNITY ISSUES IN INTERNATIONAL LAW CHAPTER II: FACTORS OF INTERNATIONAL TRADE

Of all te economic acti(ities, it is ard to imagine one more rele(ant to te "ros"erit$ of te co!ntr$ tan international trade' International trade allows co!ntries to en&o$ goods wic te$ wo!ld not a(e #een a#le, for lac0 of indigeno!s raw materials or tecnolog$, to "rod!ce, and to earn (ital foreign e%cange #$ selling goods wic te$ are a#le to "rod!ce or man!fact!re at an ad(antage o(er oter co!ntries' Te m!t!al demand and s!""l$ for goods in t!rn stim!lates te econom$, res!lting in growt and em"lo$ment' Te fact is tat no co!ntr$ is woll$ self) s!fficient' Te mo(ement of goods generates te mo(ement of ca"ital, and ca"ital ena#les a glo#al financial s$stem to remain sta#le' Indeed, des"ite some of te diffic!lties glo#ali5ation as #ro!gt into te international trading s$stem, international trade #$ and large remains a significant 0e$ to economic s!ccess and de(elo"ment'

Te 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, tere are man$ legal r!les, weter international, s!"ra)national or national, tat a""l$ to te "!#lic or economic as"ects of international trade' Tese ma$ incl!de, for e%am"le, instr!ments s!c as te General Agreement on Tariffs and Trade GATT., #ilateral 2ree Trade Agreements, te E!ro"ean Union Treat$, c!stoms law, etc' It is clearl$ needf!l, gi(en te "!#lic and economic im"ortance of international trade, tat s!c instr!ments are in "lace to ens!re tat factors wic distort trade or !nfairl$ arm de(elo"ing co!ntries are "ro"erl$ controlled' Tere is owe(er anoter as"ect of international trade wic deser(es no less recognition4te "ri(ate as"ects of international trade' Alto!g inter)national trade is sometimes e%"ressed in terms of trade #etween co!ntries, in realit$, te ma&orit$ of te traders are cor"orate entities or #!sinesses' Tese entities or "ersons ma0e contracts for te sale and "!rcase of goods across #orders wic te$ wo!ld li0e see recognised and enforced #$ nation states' Teir relationsi" wo!ld onl$ wor0 if oter commercial arrangements were in "lace to facilitate te cross #order sale and "!rcase of te goods' Tese "ri(ate commercial arrangements are essentiall$ s!#&ect to national law' Tis "a"er is t!s "rimaril$ concerned wit ow Englis law go(erns tese relationsi"s and transactions' In sort, te s!#&ect !nder consideration is international commerce on Englis law terms'

In "artic!lar, te "a"er will e%amine ow Englis law facilitates and enforces te international sale relationsi"' In an$ sale, it is im"erati(e for te goods to #e si""ed or :3ANA;YA NATIONAL LAW UNIVERSITY

C


deli(ered' Tis is made all te more com"le% in international trade #eca!se of te distances in(ol(ed' Te goods a(e to #e trans"orted, !s!all$, #$ eiter te carrier' Te carrier wo!ld insist on a contract of carriage wit DnetD te #!$er or seller' It is terefore of some im"ortance to disc!ss tis contract in some detail' In te meantime, te seller or #!$er wo!ld wis to "rotect temsel(es against an$ ris0 of loss, damage or dela$ ca!sed to te goods as a res!lt of te distances te goods a(e to #e carried o(er' Te most con(entional form of "rotection is te ins!rance' Te law relating to ins!rance contracts reB!ires te ins!red "erson and te ins!rer to act towards eac oter in good fait, and "laces a n!m#er of conditions on te ins!red "erson #efore a claim wo!ld #e "aid o!t, gi(en tat a#!se migt arise' Oter tan te reB!irement to "a$ for te goods, tere ma$ also #e te need to raise finance for #ot te seller and #!$er. from #an0s !sing te sale contract' 3ere, an e(al!ation of te law relating to "a$ment and trade finance is necessar$' Last, #!t not least, dis"!tes ine(ita#l$ do a""en' Te #oo0 t!s e%amines te iss!e of were to s!e and wic co!ntr$Ds laws will a""l$ to te contract, in te ligt of te international element in te contracts' Tere is also te e(er im"ortant role alternati(e dis"!te resol!tion metods "la$ in el"ing commercial "arties resol(e teir dis"!tes' Te #oo0 ends wit a ca"ter co(ering different metods of non &!dicial resol!tion of dis"!tes4in "artic!lar, commercial negotiation and ar#itration'

Wat Go(erns te Relationsi"s in International Trade Wito!t del(ing into te genesis of Englis international commercial law, 6 it s!ffices to o#ser(e tat te following migt #e said to #e its main caracteristics •

to ens!re certaint$ in te reg!lation of te "artiesD rigts and o#ligations #$ ens!ring

•

te law is consistent wit "recedent and "redicta#leCF to "ro(ide s!fficient fle%i#ilit$ to te "artiesD need to do #!siness #$ "ermitting te recognition of trade c!stom and !sageF  to gi(e "rimac$ to te "artiesD agreement #$ "referring not to re)write te terms of te contract wito!t s!fficient "roof of te

•

"arties "res!med intentionHF to "ro(ide an efficient s$stem for te resol!tion of commercial dis"!tes tro!g te wor0ings of te commercial co!rt, te recognition and enforcement of ar#itral

6 See :'9' Scmittoff, :ommercial Law in a :anging Economic :limate @nd edn London Sweet  9a%well, +>7+., :s + and @ for a general acco!nt of te istorical de(elo"ment of commercial law' C @ As Lord Salmon said in 9ardoif *eac  :o Ltd ( Attica Sea :arriers :or" of Li#eria Te Laconia. J+>KK A':' 7H? at 7K7 -:ertaint$ is of te "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, te 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' Te "ro#lem to!g is alwa$s one of constr!ction of te cla!se #!t in tat case, gi(en te commercial #ac0gro!nd, te co!rt was "ers!aded tat te cla!se 0nown as an -entire agreement- cla!se. was s!fficientl$ wide to e%cl!de c!stom and !sage'


H


awards, te facilitation of oter forms of alternati(e dis"!te resol!tion incl!ding mediation, conciliation, etc'. and te recognition and enforcement of foreign &!dicial •

awardsF and to recognise te international dimension of commerce #$ te a""lication of s"ecialised r!les of conflict of laws, te admittance of "ractice and r!les of international organisations s!c as te International :am#er of :ommerce, i te UN:ITRAL. as g!iding te inter"retation and a""lication of commercial law, and te !se of foreign law as a g!ide' Te f!nctions of international commercial law are necessaril$ lin0ed to teir so!rces' One of its most im"ortant so!rces is te commercial contract' Tat sall #e te starting "oint in tis ne%t section' In t!rn, te contract can onl$ a(e e%istence and enforcea#ilit$ #eca!se it is !nder"inned #$ national law' 3owe(er, tat relationsi" #etween te contract and national law m!st not #e treated in isolation' EU and international legal infl!ences also a(e an im"act'

:ontract Were te "erformance of a d!t$ is "ro(ided for #$ contract, !nless te "ro(ision +)contradicts te law or "!#lic "olic$ of te co!ntr$, tat contract!al "ro(ision sall #e #inding as #etween te "arties' In te e%amination of te relationsi" #etween te "arties, it is terefore necessar$ to e%tract te contents of te contract and ten "ro"erl$ to constr!e tem to determine te e%tent of tat relationsi"' Te contents of te contract!al relationsi" ma$ #e fo!nd eiter in te e%"ressl$ stated terms of te contract or ma$ #e elicited #$ te co!rt from te s!rro!nding facts or legal en(ironment' Te terms of te contract m!st #e s!fficientl$ certainF in Scwe""e ( 3ar"er J@??7 EW:A :i( CC@, weter tere is certaint$ can sometimes #e a diffic!lt matter of &!dgment' Tere, in a @)+ decision, te :o!rt of A""eal eld tat te financing contract was !ncertain gi(en tat tere were no clear terms as to te amo!nt of finance so!gt, te rate or rates of interest and an$ oter consideration to #e "ro(ided, te lengt of te finance and ow re"a$ment was to #e made' In general, te co!rts wo!ld tr$ to sa(e a commercial deal as te "res!m"tion is tat tere is intention to #e legall$ #o!nd in a commercial relationsi"' Indeed, te co!rts, were a""ro"riate, wo!ld im"l$ reasona#le terms into te contract to ma0e it enforcea#le' 3owe(er, te contract also as to #e ca"a#le of #eing "erformed and tis is were te co!rts migt find te ga"s in te -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' Tese standardised contracts are (er$ m!c te res!lt of te growt of large)scale enter"rises wit mass "rod!ction and mass distri#!tion' :3ANA;YA NATIONAL LAW UNIVERSITY

M


According to ;estrel -Te stereot$"ed contract of toda$ reflects te im"ersonalit$ of te mar0et' It as reaced its greatest "erfection in te different t$"es of contracts !sed on te (ario!s e%canges' Once te !sef!lness of tese contracts was disco(ered and "erfected in te trans"ortation, ins!rance, and #an0ing #!siness, teir !se s"read into all oter fields of large scale enter"rise, into international as well as national trade '' ' -M

Te #enefits of !sing tese standardi5ed terms incl!de i'

As far as te trader or #!sinessman is concerned, te ris0 factor is e%tremel$ im"ortant in an$ #!siness (ent!re' 3ence wit te !niformit$ of terms and "redicta#ilit$ of conseB!ences from te contract!al arrangement #eing made "ell!cid rigt at te o!tset, e is a#le to calc!late te "recise ris0s in(ol(ed' Ta0e for e%am"le standard form ins!rance con)tracts, te commonl$ !sed terms of te co(er and e%ce"ted "erils ma0e te com"!tation of ris0s more efficient for #ot te ins!rer and te ins!red'

ii'

Standard form contracts are also !sef!l in e%cl!ding or controlling te -illogical factorof &!dicial reasoning in litigation te con(iction tat #eing codified terms will ma0e te contract so lim"id tat te co!rt or ar#itrator will a(e little coice #!t to adere to te e%"ressed terms' :larit$ in standard form contracts is no less an im"ortant factor in its a""eal to te #!siness "erson' 8ecision ma0ers entr!sted wit te tas0 of constr!ing te standard form contract can ta0e comfort in te fact tat tese terms are not no(el, #!t a(e #een addressed #$ "recedent or "ractice'

iii' i('

Te !se of standard form contracts also contri#!tes to te red!ction in cost and increase in efficienc$ of transaction' Te time and cost sa(ed from e%tensi(e negotiation and "ersonali5ed drafting of te 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

K


CHAP – III: SOVEREIGNTY IN INTERNATIONAL ECONOMIC LAW

I' 1ASI: NOTIONS A. A1SOLUTE SOVEREIGNTY Te%t#oo0s often declare -so(ereign- States to #e te onl$ original s!#&ects of inter)national law' As o""osed to oter s!#&ects of international law wic deri(e teir stat!s as s!#&ects from sonic act of te original s!#&ects, tat 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 #$ te mere fact of teir e%istence'

3owe(er, wen is a State -so(ereign- Te notion of so(ereignt$ was de(elo"ed in te earl$ 9iddle Ages !s lection to te claims of te Em"erors of te 3ol$ Roman Em"ire to #e te tem"oral r!lers or te glo#e, te *o"e #eing its s!"reme a!torit$ in s"irit!al matters onl$' At no time did tese claims of te Em"erors and *o"es f!ll$ corres"ond to realit$' E(en so, tese claims were resented #$ nil oter r!lers as an im"ediment to teir longing to #e te master of teir own destin$ 4 a longing, wic tese r!lers sare wit most indi(id!als, weter "$sical or &!ridical, O""osed as it was to claims to an o(erreacing im"erial a!torit$, so(ereignt$ co!ld onl$ #e a#sol!te 4 a r!ler eiter)is te master a is own destin$, recogni5ing no#od$ on tis eart as It is s!"eriors or e is not' A so(ereign r!ler, master of is own destin$, cannot #e s!#&ected to r!les made and enforced #$ oters, ence e m!st #e freed from te o#ser(ance of te law ) "rince"s legi#!s sol!t!s'

#. RELATIVE SOVEREIGNTY AN8 INTER8E*EN8EN:E It was te (er$ "!r"ose of te doctrine of so(ereignt$ to allow also oter r!lers tan te Em"eror to #e te masters of teir own destinies, 3owe(er, as soon as tese (ario!s so(ereigns entered into relations wit eac oter, tere ad to #e some m!t!all$ recogni5ed r!les go(erning tese relations' If a r!ler, rel$ing on is claim to #e te master of is own destin$, wo!ld insist on determining for imself, wat tese r!les so!ld #e, tere are onl$ two "ossi#ilities' In te !nli0el$ case tat te oter r!lers wo!ld recogni5e is claim, te$ wo!ld recogni5e im as teir so(ereign' So!ldF owe(er, e(er$ r!ler !"old is claim to #e so(ereign to te e%tent tat e can esta#lis is own r!les for is relations wit is fellow)so(ereigns, fl! reg!lation of tese relations co!ld co!nt on general acce"tance'


7


Yet, te States on tis glo#e are in man$ wa$s de"endent on eac oter' S!c interde"endence) reB!ires te e%istence of r!les concerning inter)State relations' Tese r!les cannot #e tose made #$ a single State' If e(er$ State claimed to ma0e s!c to s!c r!les ten ine(ita#le non)acce"tance #$ oter 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 tese relations, tat is, in (iew of te "resent da$ world)wide inter)de"endence, #$ all States of te glo#e' If a State was to #e allowed to disregard tese r!les of in0in+M?+ml law, in (iew of its claim to #e te master of its own destin$, tere wo!ld no longer #e an$ relia#le #asis for te inter)state relation reB!ired #$ te fact of te interde"endence of te se(eral so(ereign States'

Recognition of tese facts ad led States to discard te notion of a#sol!te so(ereignt$ in fa(o!r of tat of relati(e so(ereignt$' An$ State now is said to e so(ereign, if its acts me not s!#&ect to an$ oter l!tes tan tose of international law' Te a#sence of s!c -oter r!les-, in general, is tested mainl$ #$ Dformalistic criteria' Interde"endence #eing as strong as it is, not e(en te two s!"er)"owers co!ld claim to #e tr!l$ inde"endent of eac oter, if inde"endence and so(ereignt$ wo!ld #e determined strictl$ according to material criteria' Onl$ were a""lication of formalistic criteria wo!ld lead to a #latant contradiction wit realit$ wo!ld te 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 te claims of 9anc!ria and :roatia +>C+)+>CH. to #e so(ereign' Tese -"!""et States- failed to o#tain general recognition !s so(ereign States'D

c. SOVEREIGN EUALITY It is te (er$ essence of so(ereignt$ tat no State claiming to #e so(ereign can recogni5e anoter State as a(ing legal a!torit$ o(er it' According to te doctrine of relati(e so(ereignt$, all so(ereign States terefore m!st #e eB!al #efore international law' 3owe(er, ere as elsewere, eB!alit$ ma$ #e !nderstood in different wa$s'

2ormal eB!alit$ treats all s!#&ects of law in te same manner' Tis eB!alit$ is meant wen Article @, "aragra" +, of te United Nations :arter declares -te Organi5ation is #ased on te "rinci"le of so(ereign eB!alit$ of all its mem#ers-' As a conseB!ence (oting in te GeneralD Assem#l$ follows te -one State, one (ote- r!le' t @- Tere is no cance tat weigted (oting will re"lace tis r!le,+@MC as te smallest mem#er States contri#!ting onl$ @,HC to te UN #!dget,+@M# $et constit!ting te two)tirds ma&orit$ reB!ired for (otes on im"ortant matters, co!ld "re(ent s!c a cange'


>


3owe(er confronted wit te ;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 te UN General Assem#l$, wen ado"ting te #!dget on te -one State, one (ote- #asis' will follow te recommendation of te :ommittee for *rogramme and :oordination :*:., were decisions will a(e to #e ta0en #$ consens!s'

3owe(er, eB!alit$ ma$ also #e !nderstood FIs material eB!alit$, granting eB!al treatment onl$ to s!#&ects, wic are materiall$ eac oterDs eB!als, according to a criterion cosen in ad(ance' In international law, te criterion for material eB!alit$ of States can e, inter cilia, teir "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 tat B!alitati(e canges in te glo#al econom$ a(e wea0ened te a#ilit$ of states to "!rs!e a!tonomo!s "olicies 4 or a(e at least mar0edl$ raised te costs of doing so'K International dr!g traffic0ing is a common"lace e%am"le' States ma$ "roi#it narcotics, #!t in a glo#ali5ed, integrated, and o"en econom$ te$ cannot effecti(el$ 0ee" tem from entering teir #orders' Li0ewise wit glo#al "!#lic goods of te 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 te o5one la$er' Tese sorts of effects and e%ternalities in t!rn create incenti(es for states to coo"erate tro!g international instit!tions'7 Te standard arg!ment a#o!t te so(ereignt$ im"lications of tis "rocess as #een addressed a#o(e' Te alternati(e conce"tion of so(ereignt$ I e%"lore in tis "art draws on tis #road transformation in te glo#al "olitical econom$ to instead s!ggest tat so(ereignt$ is ena#led rater tan wea0ened #$ tese coo"erati(e efforts'> As one "rominent scolar "!ts it, Dinterde"endence does indeed callenge te effecti(eness of "!rel$ national "olic$, #!t not te formal so(ereignt$ of states ''' on te wole, international instit!tions reinforce rater tan !ndermine formal state so(ereignt$'+? Tis

K It is now a "latit!de tat te a#ilit$ of go(ernments to attain teir o#&ecti(es tro!g indi(id!al action as #een !ndermined #$ international "olitical and economic interde"endence'D ;eoane, +>>6, a#o(e at >@' See also Ro#ert ?' ;eoane, D3o##esDs 8ilemma and Instit!tional :ange in World *olitics So(ereignt$ in International Societ$D in 3' 3' 3olm and G' Sorenson eds., Wose World Order Une(en Glo#ali5ation and te End of te :old War +>>H.' New Yor0 Times col!mnist Tom 2riedman coined te widel$)B!oted "rase DGolden Strait&ac0etD to descri#e tis "enomenon' Tomas 2riedman, Te Le%!s and te Oli(e Tree Understanding Glo#ali5ation LO: Ancor 1oo0s, +>>>., :' M' 7 ;al Ra!stiala, DLaw, Li#erali5ation, and International Narcotics Traffic0ingD, NYU <' IntDl L' and *olic$ +>>>.' > Edward *arson, *rotecting te O5one La$er Science and Strateg$ O%ford O%ford Uni(ersit$ *ress, @??6.'

+? ;eoane, +>>6 at >+' :3ANA;YA NATIONAL LAW UNIVERSITY

+?


#road conce"tion of so(ereignt$ reinforcement as elsewere #een termed Dte new so(ereignt$D'++ In te words of two leading "ro"onents Te largest and most "owerf!l states can sometimes get teir wa$ tro!g seer e%ertion of will, #!t e(en te$ cannot acie(e teir "rinci"al "!r"oses 4sec!rit$, economic well)#eing, and a decent le(el of amenit$ for teir citi5ens 4wito!t te el" and coo"eration of man$ oter "artici"ants in te s$stem ''' Tat te contem"orar$ international s$stem is interde"endent and increasingl$ so is not news' O!r arg!ment goes f!rter' It is tat, for all #!t a few of self)isolated nations, so(ereignt$ no longer consists in te freedom of states to act inde"endentl$, in teir "ercei(ed self)interest, #!t in mem#ersi" in good standing in te regimes tat ma0e !" te s!#stance of international life' To #e a "la$er, a state m!st s!#mit to te "ress!res tat international reg!lations im"ose ''' So(ereignt$, in te end, is stat!s 4 te (indication of te stateDs e%istence as a mem#er of te international s$stem'+@ Te conce"t of a Dnew so(ereignt$D #!ilds on a recognition of te man$ canges in te international s$stem and in domestic "olitics in te twentiet cent!r$'

Te 0e$ cange is increasing interde"endence te 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 wat occ!rs witin teir territoriesD'+C Te #road "oint is tat tese de(elo"ments, wic are now dee"l$ em#edded, "rofo!ndl$ intertwine te interests and fort!nes of states and societies' States can no longer fr!itf!ll$ act a!tonomo!sl$, if te$ e(er co!ld' Or, more "rofo!ndl$, most states no longer desire com"lete a!tonom$ #eca!se a!tar0$ cannot "ro(ide tem wit te goods and o!tcomes te$ and teir societies now reB!ire' Te latter form!lation "oints toward a second, closel$ related cange, one "artic!lar to te "ostwar democratic order te sift in state)societ$ relations in ad(anced ind!strial democracies' Tis sift concerns te nat!re of te economic and social order and te stateDs role witin it' *olitical a!torit$ re"resents a f!sion of "ower and ++ A#ram :a$es and Antonia 3andler :a$es, Te New So(ereignt$ :om"liance wit International Reg!lator$ Agreements :am#ridge, 9A 3ar(ard Uni(ersit$ *ress, +>>H.' See also Antonio *ere5, =Wo ;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 Te conce"t of com"le% interde"endence sares some similarities wit glo#ali5ation Dte notion of glo#ali5ation differs from tat of interde"endence in tat it refers to B!alitati(el$ different conditions' Wereas te notion of interde"endence refers to a growing sensiti(it$ and (!lnera#ilit$ #etween se"arate !nits, glo#ali5ation refers to te merging of !nits ''' ne(erteless, te ca!sal mecanisms mentioned in connection wit te dri(ing forces and te ongoing cange in world "olitics are B!ite similar in #ot fields'D 9icael P!rn, D2rom Interde"endence to Glo#ali5ationD, in Walter :arlsnaes, Tomas Risse, and 1et A' Simmons, Te 3and#oo0 of International Relations London Sage, @??@., at @6H' See also Ro#ert ;eoane and 7>.F *ili" G' :ern$, DGlo#ali5ation and te :anging Logic of :ollecti(e ActionD, C> International Organi5ation A!t!mn +>>H.' +C ;eoane +>>H a#o(e n H> at +KM)KK'


++


legitimate social "!r"ose'+H Te legitimate social "!r"oses for wic state "ower co!ld #e wielded canged in te West and elsewere. after te Second World War' Te "ostwar international economic order reflected wat
+H M7 76.' See also Anne) 9arie 1!rle$ Sla!gter., DReg!lating te WorldD, in >6.' Se arg!es tat m!c of te "ostwar m!ltilateral s$stem of international instit!tions can #e !nderstood as a "ro&ection of te New 8eal reg!lator$ state' M> Edward 3allett :arr, Te Twent$ YearsD :risis, +>+>) +>6>,) An Introd!ction to te St!d$ of International Relations London 9acmillan and :o, +>6>.' K? Tis is not to sa$ !niforml$F tere is considera#le (ariation in te str!ct!re of ca"italism and te role of state in te ma&or economies of te world' See, e'g', *eter 3all and 8a(id Sos0ice eds., Te Varieties of :a"italism Te Instit!tional 2o!ndations of :om"arati(e Ad(antage @??+.' K+ DIn s!m, efforts to constr!ct international economic regimes in te interwar "eriod failed not #eca!se of te lac0 of a egemon' Te$ failed #eca!se, e(en ad tere #een a egemon, te$ stood in contradiction to te transformation of it in te mediating role of te state #etween mar0et and societ$, wic altered f!ndamentall$ te social "!r"ose of domestic and international a!torit$'D See R!ggie, a#o(e n C@, at @?7' K@ See :a$es and :a$es, a#o(e, at @K'


+@


Tis order was m!ltilateral in caracter, so as to a(oid te r!ino!s economic !nilateralism of te interwar "eriod'+M 1!t, !nli0e te old nineteent)cent!r$ gold standard li#eralism, it was "redicated !"on domestic inter(ention into te econom$' Tere are man$ arg!ments a#o!t te transformation to em#edded li#eralism' Te im"ortant "oint ere is sim"l$ tat societal o#&ecti(es and e%"ectations a#o!t te go(ernmentDs res"onsi#ilit$ to ens!re domestic economic and "olitical sta#ilit$ ad canged mar0edl$'- Tis transformation meant tat as a "olitical matter onl$ certain 0inds of international legal regimes co!ld #e s!stained' It also meant tat tose legal regimes were now im"ortant (eicles for states to f!lfill teir new social "!r"oses' Lin0ing tese arg!ments togeter el"s ma0e sense of te claim tat international instit!tions 4 in te contem"orar$ conte%t 4 are in fact te medi!m tro!g wic so(ereignt$ is created or "racticed rater tan a restraint !"on it' In tis (iew, te Donl$ wa$ most states can reali5e and e%"ress teir so(ereignt$ is tro!g "artici"ation in te (ario!s regimes tat reg!late and order te international s$stemD' Isolation from te increasingl$ dense international conte%t Dmeans tat te stateDs "otential for economic growt and "olitical infl!ence will not #e reali5edD' +K

2ar from #eing treats to so(ereignt$, international instit!tions o!gt to #e !nderstood as instr!ments tat strengten or instantiate state so(ereignt$, gi(en a "artic!lar, istoricall$) contingent contem"orar$ state of te world' Indeed, as one scolar arg!es, gi(en te c!rrent world economic s$stem Dte United States can #etter "romote economic growt, "ros"erit$, and &o# creation tro!g international coo"eration, s"ecificall $ te WTO, tan it can acting alone' ''' United States so(ereignt$ is not diminised #$ s!c "artici"ation, and te acco!nta#ilit$ of democraticall$ elected officials to te "eo"le is not red!ced'+7 Gi(en a world in wic largel$ irre(oca#le canges in te glo#al econom$ a(e destro$ed te a#ilit$ of states to "ros"er !nder a!tarc$, and in wic states m!st acie(e social o#&ecti(es to #e legitimate, international instit!tions are now te "rimar$ means #$ wic states ma$ "ros"er and acie(e social o#&ecti(es' :onseB!entl$, te$ are te "rimar$ means #$ wic states ma$ reassert or e%"ress teir so(ereignt$' Instit!tions acti(el$ aid states in tis reassertion of so(ereignt$'+M Edward 3allett :arr, Te Twent$ YearsD :risis, +>+>)+>6>,) An Introd!ction to te St!d$ of International Relations London 9acmillan and :o, +>6>.' K? Tis is not to sa$ !niforml$F tere is considera#le (ariation in te str!ct!re of ca"italism and te role of state in te ma&or economies of te world' See, e'g', *eter 3all and 8a(id Sos0ice eds., Te Varieties of :a"italism Te Instit!tional 2o!ndations of :om"arati(e Ad(antage @??+.' K+ DIn s!m, efforts to constr!ct international economic regimes in te interwar "eriod failed not #eca!se of te lac0 of a egemon' Te$ failed #eca!se, e(en ad tere #een a egemon, te$ stood in contradiction to te transformation of it in te mediating role of te state #etween mar0et and societ$, wic altered f!ndamentall$ t e social "!r"ose of domestic and international a!torit$'D See R!ggie, a#o(e n C@, at @?7' K@ See :a$es and :a$es, a#o(e, at @K'

+K Id' +7 >M., at +?@>)6?' :3ANA;YA NATIONAL LAW UNIVERSITY

+6


Tis is a f!ndamentall$ transformationalist arg!ment it rests on te claim tat #ot te international s$stem and state)societ$ relations were transformed #$ e(ents of te twentiet cent!r$' As a res!lt, te nat!re of so(ereignt$ itself is said to #e transformed' Wate(er its oter (irt!es, tis arg!ment rigtl$ igligts te im"ortance of economic and "olitical conte%t for conce"tions of so(ereignt$' So(ereignt$, in oter words, is an e(ol!tionar$ rater tan a static conce"t' Te ancient Gree0 #elief in te (irt!es of te small cit$)state was "artl$ "redicated on a "artic!lar world' In tis world, nearl$ all "olitical decisions co!ld not onl$ #e made, #!t #e made effecti(el$, witin te s"ere of te cit$)state' As a res!lt, instit!tions a#o(e te state were #asicall$ f!nctionall$ s!"erfl!o!s' In a igl$ interde"endent world, owe(er, te dis"arit$ #etween "olitical #o!ndaries and economic or ecological #o!ndaries renders effecti(e self) go(ernment igl$ "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 te state' It is tis "rocess of rising interde"endence leading to decreased national go(ernance ca"acit$ tat as !ndermined national "olic$ res"onses' Tis 4 along wit a sift to more demands #$ citi5ens !"on te state 4 !nder"ins te conce"t of te new so(ereignt$ and gi(es it its transformationalist fla(or' A corollar$ of tis arg!ment is tat so(ereignt$ in tis new sense is most "rono!nced in te li#eral West' It is te states of te West, tigtl$ integrated economicall$ and closel$ tied "oliticall$, tat #est em#od$ te conce"t of te new so(ereignt$' Te EU re"resents te a"oteosis of tis Dlogic of te WestD' Tere is also an im"licit re"resentational element in tis conce"tion of so(ereignt$' On te one and, te idea of a Dnew so(ereignt$D is "redicated on te satisfaction of domestic "references, wic im"lies some "rinci"al)agent relationsi" #etween societ$ and state' On te oter and, #$ arg!ing tat =so(ereignt$, in te end, is stat!s 4 te (indication of te stateDs e%istence as a mem#er of te international s$stemD, "ro"onents s!ggest tat societal demands fare secondar$ wat matters for so(ereignt$ is "artici"ation in international societ$'

A state is so(ereign wen it is an acti(e "la$er in te s$stem, rater tan an a!tonomo!s and !nfettered actor' Tis line of arg!ment, !niB!el$ among te claims e%amined in tis article, to!ces on te relational as"ects of so(ereignt$' It igligts te im"ortance of so(ereignt$ as a stat!s tat oter states in te international s$stem s!""l$' An entit$ can declare itself a state, "rint mone$, and own territor$, #!t if te rest of te states do not recogni5e it as s!c it lac0s so(ereignt$' Te foc!s on te relational as"ects of stateood is e(ocati(e of te Englis Scool of international relations teor$, wic #roadl$ arg!ed tat states li(e in an Qanarcical societ$' Te canonical Englis Scool definition of an international societ$ is a gro!" of states tat :3ANA;YA NATIONAL LAW UNIVERSITY

+C


Qconcei(e temsel(es to #e #o!nd #$ a common set of r!les in teir relations wit one anoter, and sare in te wor0ing of common instit!tions' States e%ist "rior to international societ$F international societ$ is a s$stem tat wa%es and wanes' One can inter"ret te new so(ereignt$ arg!ment tro!g tis "rism to mean tat, !nder c!rrent circ!mstances glo#ali5ation, economic interde"endence., an international societ$ e%ists' Gi(en an interde"endent world, a state tat 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'

Te macro canges in te international s$stem 4 s!c as increasing glo#ali5ation or interde"endence 4 tat I a(e t!s far stressed are of co!rse not sim"l$ e%ogeno!sl$) determined' International economic instit!tions a(e sa"ed and fostered te rise of interde"endence e(en as te$ el" to manage and cannel it' In tis sense international instit!tions "la$ a d!al role' Te$ are tools tat states !se to reassert and regain so(ereignt$F $et te$ also "romote "rocesses tat el" erode state a!tonom$ and "ower' In closing, it is im"ortant to !nderscore tat te idea of a new so(ereignt$ does not directl$ address te acco!nta#ilit$ concerns tat animate m!c of te contem"orar$ de#ate o(er international economic instit!tions' Tis de#ate is often a#o!t deficits in te "rocesses of glo#al go(ernance in creating increasingl$ "owerf!l international instit!tions to el" !s acie(e te aims we desire, a(e we armed te democratic (al!es tat la$ at te eart of te modern li#eral state Reconce"t!ali5ing so(ereignt$ as mem#ersi" in good standing in te societ$ of states does not directl$ address tis iss!e' Te mo(e to international instit!tions can #e done in wa$s tat are more or less acco!nta#le, more or less trans"arent and o"en' 3owe(er, if state legitimac$ is "artl$ gro!nded in effecti(eness, effecti(e international economic instit!tions ma$ #e legitimate 4 #eca!se te$ are instr!mentall$ !sef!l 4 e(en to!g te$ lac0 acco!nta#ilit$ in te !s!al sense' A domestic analog$ is central #an0 inde"endence'. Of co!rse, it is not clear tat a lac0 of democratic "edigree correlates wit greater effecti(eness, to!g in te trade conte%t tis ma$ well #e tr!e' In sort, "ro"onents of a new so(ereignt$ claim tat, state)societ$ relations a(e #een transformed in a manner tat is significant for conce"t!ali5ations of so(ereignt$'

8emocratic go(ernance entails res"onsi(eness to growing societal demands' Wile states co!ld once #e relati(el$ a!tarcic, toda$ interde"endence and glo#ali5ation ma0e it im"ossi#le for states, acting alone, to "ro(ide te "olic$ o!tcomes tat "!#lics desire' So(ereignt$ in its traditional a!tarcic sense is t!s lost #eca!se of #road canges in te international s$stem as well as #road canges in te demands of citi5ens' International instit!tions, far from a treat to :3ANA;YA NATIONAL LAW UNIVERSITY

+H


so(ereignt$, are now said to #e te means #$ wic states satisf$ tese new and more e%tensi(e demands' International instit!tions are, "arado%icall$, sa(iors of so(ereignt$'

SOVEREIGNTY AN8 *U1LI: :3OI:E Te second strand of arg!ments a#o!t strengtening so(ereignt$ tro!g glo#al go(ernance ta0es a B!ite different tac0, to!g tere is significant o(erla" in some res"ects' Tere are two (ariants of tis arg!ment' 1ot #!ild on "!#lic coice teor$, and ence #ot #egin wit te "res!m"tion tat "olitics and law are ar enas of str!ggle in wic actors see0 "ri(ate gain' +> *!#lic coice teorists a(e ill!strated te man$ wa$s in wic "!#lic instit!tions ma$ #e !sed for "ri(ate ends' *!#lic coice anal$5es "olitical actors and acti(ities !sing te same set of tools and ass!m"tions de"lo$ed for economic actor and acti(itiesF te teor$ (iews "olitics and economics as sared "!rs!its, teoreticall$ and em"iricall$' *!#lic coice teor$ D"res!mes tat go(ernmental "olic$ reflects te eB!ili#ri!m o!tcome of a ri(alro!s "rocess among com"eting interest gro!"s wo tr$ to ca!se go(ernmental "olic$ to f!rter teir own ends' @? As a res!lt, te state is a normati(el$ "ro#lematic entit$ 4 "era"s necessar$ to reali5e certain aims of a good societ$, #!t igl$ "rone to rent)see0ing and ca"t!re' To!g tis lin0 is not alwa$s made e%"licit, traditional "!#lic coice models of legislation im"l$ tat as rent)see0ing di(erts reso!rces and "olicies toward s"ecial interests, democratic "rocesses 4 and "o"!lar so(ereignt$ 4 are !ndermined' Rater tan act as faitf!l agents, state actors will !se state "ower for teir own "ersonal ends to enance teir "ower or sec!re "ri(ate goods' *!#lic coice teor$ s!ggests tat international economic instit!tions ma$ enance rater tan erode national so(ereignt$ in two different wa$s' 2irst, international economic instit!tions can stri" certain "olic$ coices awa$ from te state, tere#$ stri""ing tem awa$ from te rent)see0ing "ri(ate actors tat acc!m!late aro!nd state "ower li0e so man$ mots to a flame' Te res!lt is "olic$ tat is, co!nter)int!iti(el$, more faitf!l to "o"!lar "references' So(ereignt$ is strengtened #eca!se citi5ens are !nderstood in tis arg!ment to #e te re"ositor$ of so(ereignt$' Te second arg!ment claims tat reg!lator$ officials !se international economic instit!tions to "reser(e so(ereignt$ 4 and teir "ersonal and instit!tional "ower 4 in te face of e%ogeno!s and desta#ili5ing cange in te international

+> Tis can #e said of rational coice teories in te social sciences generall$F See, e'g', 8onald *' Green and Ian Sa"iro, *atologies of Rational :oice Teor$ 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 coice teor$ in te international trade conte%t is descri#ed in ;ennet A##ott, DTe Trading NationDs 8ilemmaD, @M 3ar(' Intl L' <' +>7H.'


+M


s$stem' In oter words, tere is #ot an DinternalD and an De%ternalD treat to so(ereignt$ tat international instit!tions ma$ ward against'


+K


:ON:LUSION At te o!tset of tese "a"ers, it can #e arg!ed tat international trade and international economic acti(ities generall$, a(e #een o(er loo0ed #$ te field of te interna tional law' Tis is #eca!se te (er$ notion of stateood itself intended to marginali5e acti(it$ tat was not "ercei(ed to #e te acti(it$ of te so(ereign state, or acti(it$ of so(ereign states, or acti(it$ tat was seen as occ!rring inde"endentl$ of tose States'

It can also #e s!ggested tat tere are two models for (iewing international trade law' One "ercei(es international trade law in terms of te economic logic of com"arati(e ad(antage' Tis is te !nderl$ing rationale for te international trading regime and for te law on wic it is #ased' And m!c of international trade law is from te "ers"ecti(e of te nation state' In tis ligt international trade law can #e (iewed as res"onding to te e%igencies of so(ereignt$' It reflects States e%ercising te a!torit$ o(er areas of domestic &!risdiction' Tis, too "ro(ides a wa$ of !nderstanding certain areas of international trade law'

Alto!g #ot of tese models "ro(ide an insigt into international trade law, in fact te former is gaining more gro!nd at te e%"ense of te latter' Tat is, tere as #een a stead$ encroacment of te disci"lines of international trade law into areas tat migt oterwise a(e #een considered to #e witin te domestic &!risdiction of states' And, at te same time, tere as #een an encroacment of international law' Tis red!ction in te domestic &!risdiction of States as gone in and wit an increasing glo#ali5ation of economic acti(it$' Te "resent)da$ realit$ of an international econom$ caracteri5ed #$ increasing cross  #order mo(ement of te factors of "rod!ction reB!ire a f!ndamental retin0ing of te rele(ance or e(en te e%istence of an$ idea of economic so(ereignt$'

Te idea tat te so(ereignt$ is no longer wat it once migt a(e #een is not new to tose in te fields of "olitical econom$ and international relations' As *rofessor S!san Strange as written Tere is world econom$ and a world societ$, #!t territorial states still claim a so(ereignt$ tat te$ are not, for te most "art, ca"a#le of e%ercising as te$ !sed @+' In sort, te traditional wa$ in wic we a(e (iewed States and "ercei(ed teir roles and f!nctions ma$ now a(e to #e reassessed'

@+ Te 8efecti(e State, +>>H. +@C 8aedal!s HH at K?' :3ANA;YA NATIONAL LAW UNIVERSITY

+7


One conseB!ence ma$ #e tat we a(e to tin0 of states not &!st in terms of territor$, "o"!lation and ca"acit$ to enter into international relations, #!t also in terms of teir f!nctions in res"ect of enancing economic welfare'

1!t tis im"lies, some limitations as well' Te notion of so(ereignt$, te idea of "lenar$ &!risdiction and control, does not fit well in te economic field' And tis is a conseB!ence of wat I a(e descri#ed as glo#ali5ation, were#$ economic acti(it$ is no longer local or national, and economic effects witin states are often te conseB!ence of actions or decisions ta0en o!tside its #orders o(er wic it as no effecti(e control' It is also conseB!ence of te disci"lines tat a(e #een steadil$ increasing !nder te framewor0 of te GATT and now are em#odied in te WTO' Tese disci"lines, as we a(e seen, reac into areas tat migt oterwise #e regarded witin te domestic &!risdiction of states' Economic so(ereignt$ e%ists neiter in a "ractical nor a legal sense'


+>


BIBLIOGRAPHY  Debashis

Chakraborty & Amir Ullah Khan: The Wto

Deadlocked: Understanding the Dynamics of International Trade, Sage India, rint !""#  etros C$ %aroidis & 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


@?



@+

ITL - SOVEREIGN.docx

Recommend Documents