Abstract: On International Economic Law
The objective of the article is to provide a comprehensive and critical appraisal of the international ECONOMIC LAW developed to govern economic relations between different states and between states and private economic actors such as multinational enterprises. International economic law is a massive body of law that is growing rapidly and changing fast. It seeks to regulate more or less all aspects of international economic relations between states. International economic law developed as a separate and identifiable body of law in the post-Second World War era. Prior to this, the law relating to international economic activities (e.g., the protection of foreign investment) was at a rudimentary stage and was regarded as part of public international law. The Bretton Woods Institutions, which are the World Bank and the International Monetary Fund (IMF), were set up in 1944.
This article will discuss how economic relations between people and countries have developed over time, giving rise to new challenges for the law. Much of international economic law has developed relatively recently in response to the growth in international economic activity.
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Introduction: To International Economic Law
International economic law developed as a separate and identifiable body of law in the post-Second World War era. Prior to this, the law relating to international economic activities (e.g., the protection of foreign
investment) was at a rudimentary stage and was regarded as part of public international law. The Bretton Woods Institutions were set up in 1944, which are the World Bank and the International Monetary Fund (IMF).
The aim of creating these institutions was based on notions of consensual decision-making and cooperation in the realm of trade and economic relations. A multilateral framework was necessary to overcome the destabilizing effects of the previous global economic depression and trade battles, to help rebuild the shattered post-war economy, and to promote international economic cooperation between states. After the creation of Bretton Woods institutions, the General Agreement on Tariffs and Trade was established in 1948 with a view to eliminating harmful trade protectionism, removing tariffs, boosting international trade, and restoring economic health to the world after the devastation of World War II. However,
GATT was replaced by the more robust World Trade Organization (WTO) in 1995.
What is international economic law?
International economics also deals with the issue of economic development in developing countries. What are some ways that can help developing countries catch up to their peers in the developed world? What are some of the obstacles that they face on the way there? How can assistance from international institutions like the World Bank and the IMF or regional initiatives help development?
International economics is the field of economics that is concerned with the economic interactions of different nations as well as the economic interactions between nations and international institutions.
International economics looks at factors influencing nations’ ability and willingness to import and export goods. This includes conditions that make international trade beneficial for countries, which are explained using the law of comparative advantage and further explored by looking at economic systems and free trade organizations.
David Ricardo is known for his contributions to international economic theory and policy. He created the law of comparative advantage, which states that nations should produce and export goods for which they have a lower opportunity cost than another nation. Previously,
countries tried to make and sell all goods in which they had an absolute advantage. Absolute advantage means the ability to produce a larger output using the same amount of resources.
Nature of international economic law :
International economic law deals with the regulation of economic affairs between two or more different states. This is its main function. If such regulation applies to only two states, we then speak of “bilateral economic regulation. If, on the other hand, such regulation applies to more than two states, we speak of multilateral economic regulation.
Beyond this, International Economic Law is seen to increasingly deal with the regulation of traders from different countries. As a result,
International Economic Law has a dual character nowadays, as it deals with
both with the regulation of economic relations between different states and also with the regulation of traders from different countries.
The goal and characteristics of international economic law are:
Over the years, international economic law has evolved as the practice of colonialism has become less and less acceptable. As various countries have gained their independence, global laws have changed to protect them from predatory financial activities. Because of this, international economic law has developed certain goals and characteristics. These can be found in Article 38 of the Statute of the International Court of Justice, which is the judicial arm of the United Nations. These
characteristics include:
Economic sovereignty: this is the ability of a country to control its own natural and economic resources.
Duty to Cooperate: In financial and economic transactions, nations are expected to seek mutual and equitable benefit and act in good faith.
Permanent sovereignty over natural resources: The people and government of a given nation should have the ability to manage and
control the nation’s own natural resources. This is part of self-
determination.
Preferential treatment for developing countries: Developed countries should offer some types of benefits to less developed countries, like assistance with technology or similar. This empowers the less developed countries to become integrated into the global world of trade. In India, the situation of international
Economic law:
India holds a dominant position in influencing global issues related to climate change, world trade, international terrorism, and nuclear proliferation. Considering the trade war between the US and China, the threat to multilateralism from the US, and the uncomfortable trade relationship between the US and the EU and Japan, India is now at a crossroads in the international economic order. This offers a leadership opportunity to an “aspirational India” that is willing to engage in new issues of international economic order. This article examines India’s position in the multilateral trading system by comprehensively reviewing the difference between its overall trade and
sectoral interests; India’s role at the World Trade Organization (WTO) and how it has evolved; the role of India’s foreign policy in guiding its regionalism; and the opportunities that India may have in the trade war currently prevailing in the global economy. The article concludes that India’s interest is to preserve a stable multilateral trading order through the WTO while using regional or even sectoral agreements to augment its trade competitiveness.
What are other areas of international economic law?
In addition to international trade and investment law, international economic law covers disciplines such as International monetary law, which works to stabilize currency exchange rates and encourage international monetary cooperation, and International Financial Regulation, which outlines the requirements and restrictions on international banking, insurance, and securities, with the aim at maintaining the stability and integrity of the global financial system.
International labor and services law, which outlines the rights and duties of employees and employers, as well as trade unions and governments, in regulating the workplace,
International intellectual property law, which regulates and protects copyrights, trademarks, and patents on intellectual property across borders
International tax law is applied to the income that companies and corporations earn on their operations and sales abroad.
International development law, which regulates international development and typically promotes or encourages peaceful and sustainable development relationships,
International environmental law, which governs and regulates the sustainable use—and trade—of natural resources and is becoming increasingly important due to climate change,
Conclusion:
International economic law deals with two kinds of legal instruments:
soft law instruments and hard law instruments. Hard law instruments create obligations that are binding and enforceable by nature, whereas soft law instruments do not create obligations and are non-binding and generally unenforceable by nature. International economic law has evolved as the practice of colonialism becomes less and less acceptable.
As various countries have gained their independence, global laws have changed to protect them from predatory financial activities.
By: kumari Sunaina Intern at Fastrack Legal Solutions
