In association with the International Commission of Jurists

Trade & Economic Law

06 Aug

Following-up on Kevin's post that illustrated the increasing temperature anomalies of the world's climate, I want to point out a recent study pointing to evidence of a link between increasing global temperatures and a rise in violent crime and larger-scale conflicts, such as wars. Smithsonian.com reports: Now, in the most comprehensive analysis of the work on climate change and armed  conflict...

|
26 Jul

The Space Frontier Foundation’s NewSpace 2013 conference is currently underway in Silicon Valley. The program description explains that: The three day event will focus on the current, near term, and future potential and challenges of the emerging commercial space industry. People from throughout the space, advocacy and technology industries to those in startups, government and media bring their ideas for opening...

|
19 Jul

Well, not really. But that's the unintended consequence of yesterday's awful decision in US v. Sterling, in which the Fourth Circuit held that James Risen could not rely on journalist's privilege to avoid testifying against James Sterling, whom the government believes leaked classified information to Risen. According the court, the government is entitled to Risen's testimony, because he is the...

|
15 Jul

Ah, hypocrisy -- thy name is the United States. First up, US anger at Israel for not supporting a lawsuit concerning allegations that the Bank of China laundered money for Hamas and Islamic Jihad: Israeli Ambassador to the US Michael Oren was called back to Israel to take part in an emergency meeting convened this weekend by Prime Minister Benjamin Netanyahu so that Oren could pass on  messages...

|
09 Jul

[Maninder Malli recently completed a LL.M. (International Legal Studies) at New York University and he is currently working with the Legal Vice Presidency of the World Bank in Washington, D.C.] International investment law (IIL) is highly dynamic.  The lack of a broad multilateral agreement on investment coupled with the rapid rise of foreign direct investment (FDI) has led to the profusion of bilateral investment treaties (BITs) and, increasingly, minilateral arrangements between three or more geographically-proximate or otherwise like-minded States.  The ‘spaghetti bowl’ of international investment agreements is becoming further entangled with hundreds of minilateral arrangements, including free trade agreements (FTAs) with investment provisions, economic partnership agreements and regional agreements. In many areas of international law, including international trade, States are abandoning glacial multilateral initiatives and opting for regional or sectoral approaches to solve global problems and coordinate mutually beneficial action.  Moses Naím suggests that the failure since the 1990s of most grand multilateral negotiations represents not only a perpetual lack of international consensus, but also a “flawed obsession with multilateralism as the panacea for all the world’s ills.”  Naím argues for a smarter, more targeted approach, by bringing to the relevant table “the smallest number of countries needed to have the largest possible impact on solving a particular problem.”  Francis Fukuyama, similarly, has advocated for “multi-multilateralism,” entailing a diversity of institutions and institutional forms to provide governance across a range of security, economic, environmental, and other issues. In the context of IIL, the profusion of regional investment arrangements (such as the recent trilateral investment agreement between China, Japan and South Korea and the Mexico–Central America FTA) and the ongoing discussions for investment regulation in a Trans-Pacific Partnership (TPP) and a Transatlantic Trade and Investment Partnership (TTIP) are clear evidence of this minilateral trend.  As proposed in the TPP and TTIP, investment regulation is incorporated into broader economic arrangements which often include trade, intellectual property and regulatory coherence.  The Energy Charter Treaty (ECT) is a sectoral example of a minilateral treaty which entails investor protection.  States are clearly converting their strong bilateral economic and political relationships into minilateral arrangements to regulate FDI. These initiatives, at least in part, reflect a desire of State parties to circumvent broader multilateral efforts that lack consensus on the precise standards of treatment of foreign investors and thus fail to achieve substantive common ground.  The OECD’s failed Multilateral Agreement on Investment in the late 1990s and the inability to advance the multilateral investment agenda within the World Trade Organization illustrate the challenge of crafting comprehensive general principles and specific treaty provisions which are responsive to the diverse and vacillating economic, social and political conditions of a large number of States.  In the IIL context, this is most clearly manifested in the dichotomy between (i) the desire of States to attract FDI and to be perceived as active participants in the liberal economic order, on one hand, and (ii) the need to retain regulatory flexibility and avoid plethoric investor-state arbitration, on the other.  The absence of complete and adequate multilateral investment rules was historically blamed on the discord between capital-supplying and capital-receiving nations.  This dichotomy is today no longer as simple, as an increasing number of countries are both capital suppliers and capital recipients, and the correlation between the two is ever-fluctuating. I submit that greater attention should be paid to the potential for minilateral arrangements to better reflect modern State desires and ambitions for reciprocal FDI promotion and protection.  While the content of most investment agreements is remarkably similar, there are important deviations in the wording, application and interpretation of many substantive provisions. 
|
02 Jul

We haven't blogged recently here about the Chevron Ecuador case, but over the weekend the Washington Post carried a long analysis and profile by Business section reporter Steven Mufson on the state of play - focused particularly on a Washington insider part of the saga, the involvement of DC lobbying-law firm powerhouse, Patton Boggs.  Patton Boggs has been an adviser...

|
29 Jun

ABC reports: The McDonald's restaurant chain refused to open a branch in a West Bank Jewish settlement, the company said Thursday, adding a prominent name to an international movement to boycott Israel's settlements. Irina Shalmor, spokeswoman for McDonald's Israel, said the owners of a planned mall in the Ariel settlement asked McDonald's to open a branch there about six months ago. Shalmor...

|
22 Jun

I read my friend Andrew Guzman's book Overheated: The Human Cost of Climate Change with great interest because I know Guzman is exceedingly capable at communicating complex ideas in an accessible format. He's done that throughout his career, and Overheated is no exception. Like Hari Osofsky, I commend the book to our readers. Before you teach...

|
21 Jun

[Hari M. Osofsky is an Associate Professor at the University of Minnesota School of Law.] Andrew Guzman’s new book, Overheated: The Human Cost of Climate Change, does an excellent job of explaining in an accessible fashion the devastating consequences of climate change for people, especially the world’s poorest people.  The focus of this book is on bridging the gap between expert knowledge and popular understanding in order to catalyze needed mitigation.  Its great strength is that it does so without minimizing the complexity and intertwined character of the problem.  Rather, it shows how the simultaneity of climate change’s impacts and of their interaction with underlying resource scarcity and political tensions will likely have devastating human consequences even in relatively conservative scenarios of these impacts. Each chapter builds upon the previous one in portraying climate change’s human costs.  The introductory chapter likens the problem of climate change to the game of “Kerplunk,” in which one removes sticks holding up marbles and tries to win by minimizing how many marbles fall during one’s turn.  The difficulty is that the farther one gets in the game, the harder it is to prevent the marbles from falling and to limit the risks of the removal of each subsequent stick.  The book proceeds to show how late we are in our game of “Kerplunk,” outlining the harm that climate change has already done and how that pales in the face of the harm that is very likely to come.  After an initial overview of climate change science, chapters focus on the human consequences of impacts: (1) sea-level rise, severe storms, and forced migration of nation-states and populations; (2) current and future water shortages and our lack of capacity to address them adequately; (3) the risks of armed conflict arising from water shortages and other climate change impacts; and (4) the many resulting health consequences, from increases in known diseases to the growing risks of evolving pathogens and global pandemics. The book concludes with a discussion of solutions.  It analyzes ways to set a carbon price effectively, and cautions against relying on solutions like geoengineering or waiting for an increased future capacity to address the problem effectively. The book’s focus on the human face of climate change is an important contribution to the literature because it helps make the case for why we need to act to address the problem.  It compiles a wide range of existing information on climate change and puts it together in an engaging way that a reader without a technical or legal background could understand.  Each chapter interweaves geopolitics and historical examples with the problem of climate change and how it is likely to worsen.  This approach helps the book contextualize its argument, showing how climate change fits within a complex global context. This book is explicit in its primary focus on describing the human problems rather than on solving them.  However, in this review, I would like to continue where the book left off by suggesting two implications of Guzman’s exposition for potential solutions. 
|
02 Jun

A couple of months ago, the ICTY Appeals Chamber acquitted Momčilo Perišić, the Chief of the General Staff of the Yugoslav Army, of aiding and abetting various international crimes committed by the Army of Republika Srpska (VRS) during the war in the Balkans. According to the Appeals Chamber, when a defendant is accused of aiding and abetting crimes committed by an organization,...

|
25 May

Though I'm as much caught up in the drones debate du jour as anyone here at OJ, there are other pressing matters internationally, and one of them is olive oil.  I've blogged about EVOO adulteration in the past year, but the current contretemps is different.  EU regulators want to require that restaurants serve olive oil at the table in sealed individual servings (I guess a little bit like the little sealed catsup bottles one sometimes sees in restaurants in the USA) rather than the common practice of serving olive oil, for dipping bread or what-have-you, in little decanters.  The concern is partly health and food safety, but it also appears to be a press by agricultural interests to force the use of labeled olive oil, which will presumably have the effect of pushing up consumer awareness (yes, if - big if - what's on the label is true), price (definitely), and quality (maybe, maybe not). So, as reported in the New York Times a few days ago (it appears the rule has been shelved for now):

The measure, which would have required that restaurants serve olive oil in sealed, clearly labeled and nonreusable containers, was meant to guarantee hygiene, according to the European Commission, the union’s executive body, which originally drafted the rules. It said the labeling would ensure the quality and authenticity of olive oils and also offer suppliers an opportunity to promote brand awareness, backers said. And the measure stood to benefit European olive growers, mostly clustered around the Mediterranean, in some of the countries hardest hit by the crisis in the euro zone. Fifteen of the union’s 27 governments supported the rule, including the major producers, Italy, Greece, Spain and Portugal. Portugal has had similar measures in place since 2005. But governments in the non-olive-producing north, including Germany, were opposed. Britain abstained.

The pushback was on classic EU terms, I guess we could say: Complaints that this sort of thing should never reach the level of the EU, and that individual states could deal with this kind of thing on their own:

The reaction was severe. Prime Minister Mark Rutte of the Netherlands condemned the measure, calling it “too bizarre for words” and not at all green. Criticism was particularly harsh in Britain, often the first among critics of the European Union’s reach. The olive oil rule was “exactly the sort of area that the European Union needs to get right out of, in my view,” Prime Minister David Cameron of Britain said Wednesday after a meeting of the bloc’s leaders in Brussels. “It shouldn’t even be on the table,” he said, immediately begging forgiveness for the wordplay.

Food safety is only partly the issue; from the standpoint of Europe's olive oil producers, the much bigger issue is brand recognition and quality assurance - assuring quality and authenticity of olive oils served, which is also to say, raising the price.  But here the EU runs into a quite different problem; restaurants refilling olive oil bottles with oils of lesser quality is the least of the concerns about EVOO authenticity and quality.  I've blogged in the past about the surprising (at least to me as an international business transactions professor) fact of massive adulteration of "extra virgin olive oil" both inside the EU and in the global export market.  It's adulterated with either lower grade olive oil, or else the oil itself is mostly low grade olive oil heated to take out the bad flavors (heated oil is essentially flavorless), or else different plant oils altogether (such as cottonseed oil.  It overwhelmingly happens at the producer, wholesaler, or distributor level, before it leaves the EU; it's pretty clear that the supermarkets, even specialty store chains such as Whole Foods, whether in the US or Europe, have no idea that the product is not what it says.  

|