Author name: Branden Loizides

Print Archives

Do BITs Really Work?: An Evaluation of Bilateral Investment Treaties and Their Grand Bargain

International investment law has undergone a remarkable transformation in a relatively short time. The fundamental tool for effecting that transformation has been the bilateral investment treaty (“BIT”), an international legal instrument through which two countries set down rules that will govern investments by their respective nationals in the other’s territory. From 1959 to 2002, nearly 2200 individual BITs were formed, making the BIT one of the most widely used types of international agreement for protecting and influencing foreign investment.

As the twenty-first century begins, the time has come to evaluate whether BITs have achieved their objectives. To answer this question, Part II examines the historical movement to form BITs. Part III explores the goals motivating BITs, namely foreign investment protection, market liberalization, and foreign investment promotion. The three succeeding Parts assess the success of BITs in achieving each of these goals. Finally, Part VII concludes by considering the implications of the BIT movement for the further development of international investment law.

Print Archives

The New Canon: Using or Misusing Foreign Law To Decide Domestic Intellectual Property Claims

In recent decades, statutory interpretation has sparked a number of spirited disagreements in the United States. These disagreements, however, have been waged almost exclusively on a domestic battleground–over questions about the reliability of legislative history, the use of statutory purpose, and the application of other interpretive tools, all of domestic origin. The relevance of foreign authorities to the interpretation or application of a domestic statute has rarely been considered. Even today, the leading casebook on legislation in the United States makes only passing mention of the possible use of foreign authorities to decide issues involving domestic statutes, while a leading casebook on comparative law appears to cast doubt on, if not reject, that possibility. For many, this absence of discussion may seem to be not an oversight, but a manifestation of the basic principle that interpreting or applying a domestic statute is a question of domestic, not foreign, law.

Print Archives

Opening the Courtroom Doors to Non-Citizens

Abstract:

The Alien Tort Statute (“ATS”), U.S. federal law since the first Congress passed it as part of the Judiciary Act of 1789, has recently gained new life as a vehicle through which non-U.S. citizens can use U.S. courts to sue for torts occurring outside U.S. sovereign territory. Despite its brevity, this statute has been the subject of fierce debate, as courts and commentators have contested the access foreigners should have to U.S. courts for filing such claims. In particular, there has been significant discussion concerning the disposition of those claims alleging human rights violations.

The debate has focused on whether the ATS created a cause of action for foreigners or merely granted the federal courts subject matter jurisdiction over cases involving certain torts committed abroad. Last Term, the Supreme Court held in Sosa v. Alvarez-Machain that even though the ATS does not create any new causes of action, non-resident aliens may file a tort suit in federal court for violations of customary international law. This holding endorses a slightly more restricted version of Filartiga v. Pena-Irala—the 1980 “breakthrough” ATS case that first allowed a federal suit for violation of international human rights—and shifts the focus of the debate from whether the courts should make rulings based on norms of customary international law to how they should discern these norms.

Part II of this Recent Development outlines the case history of Sosa v. Alvarez-Machain and the lines of argument in each decision. Part III juxtaposes the case with Filartiga. By analyzing the three main themes of Filartiga—the existence of federal common law, problems with separation of powers, and the question of whether customary international law is federal common law—this piece will illustrate that Sosa is a narrower extension of Filartiga and thus only “cautiously” opens the doors of U.S. courtrooms to victims of foreign abuses.

Print Archives

The Shifting Public Order of the Oceans

Abstract:

The oceans of the world at once separate and connect us. As much as the sea provides a formidable natural barrier between the continents, it also provides a means of contact and communication, a navigable expanse and plentiful resource that has long been exploited for both individual and collective gain. Over the course of history, powerful maritime states have played the primary role in shaping the public order of the oceans. Although state practice continues to play a dramatic role, the twentieth century also witnessed prolonged and repeated efforts to codify that practice into a veritable treaty-based Law of the Sea.

In 1967—between one international effort at codification and another—Malta’s Ambassador to the United Nations, Arvid Pardo, famously urged the U.N. General Assembly to take “immediate action to prevent the breakdown of law and order on the oceans” in the face of growing concern that exactly such a breakdown was imminent. On December 10, 1982, the United Nations Convention on the Law of the Sea (“UNCLOS”), the product of decade-long negotiations, was opened for signature at Montego Bay, Jamaica. Having obtained the requisite sixty ratifications in 1993, UNCLOS entered into force on November 16, 1994. Eight years later, the United Nations proudly proclaimed that “[UNCLOS] established for the first time one set of rules for the oceans, bringing order to a system fraught with political conflict.”

But while UNCLOS set forth a widely agreed-upon set of rules, it is less clear whether its broad prescriptions created order out of chaos. Since the end of the Cold War, disorder on the oceans appears resurgent. This breakdown takes a variety of forms, including piracy, trafficking in drugs or people, illicit fishing, and degradation of the marine environment. The system of open registries, or flags of convenience, permits the facile concealment of ship ownership behind the corporate form. Lax flag state enforcement of shipping regulations leads to sub-standard vessels that pose hazards to crew and coast, as well as to the marine environment. A range of non-navigational practices also promotes and sustains disorder. These practices include unilateral, excessive claims over the extent of the territorial sea or the continental shelf, particularly through gross manipulation of the straight baselines method. UNCLOS is widely considered “one of the most comprehensive and well-established bodies of international regulatory norms in existence . . . buttressed by longstanding international norms, and formal legal agreements, critical to creating a more secure international environment.” Nevertheless, the persistence of maritime disorder indicates a critical gap between the prescription of law and the capacity or will to make that prescription effective. Alternatively, in some instances, the prescription itself may be lacking, either in specificity, scope, or adaptability to evolving circumstances. UNCLOS is undoubtedly an historic achievement, but its successful translation into an effective regime of international law is a process in need of frequent reassessment and adjustment.

The sea and its system of legal norms, however, risks characterization as a classic “out of sight, out of mind” problem. Simply because most activities on the oceans take place at some distance from our daily lives on land, issues of maritime law and oceans management are not cordoned off from transnational problems, particularly global security, that demand nearly constant attention. Renewed efforts by the United States and its allies to neutralize threats such as the proliferation of weapons of mass destruction (“WMD”) have placed a new and sustained focus on the legal regime regulating maritime behavior. The exploitation of the oceans for the transport and exchange of dangerous weaponry and technology is a global problem facilitated by the same freedom of navigation by sea that legal prescriptions have carefully preserved over time. Writing over forty years ago, professors McDougal and Burke noted that “[t]he common interest in maintaining a large measure of freedom from interference on the high seas has not been seriously questioned for some decades.” This Article asks whether seriously questioning that freedom is now permissible and wise, or whether the intervening years have recalibrated the acceptable “measure of freedom from interference,” on the high seas or elsewhere. The disorder lurking beneath the façade of legal order represented by UNCLOS—the troubling notion that “the entire structure built to regulate [the sea] is something of a fantasy floating free of the realities”—exacerbates the difficulty of reconciling “the overriding principle of noninterference” with the need to promote community well-being, both within and beyond the maritime context.

Print Archives

Volume 45, Issue 2

Print Archives

Against Global Governance in the WTO

In “Global Governance and the WTO,” Professor Andrew Guzman has done an impressive job of articulating a vision of the World Trade Organization (WTO) that many international lawyers share. As its title suggests, Guzman’s article is ultimately a call for world government by the WTO. In this necessarily brief response, we describe some of the more important theoretical and practical problems that Guzman’s proposal presents. First, in Part II, we address the matter of cross-issue bargaining in the WTO. While cross-issue bargaining can create gains for parties to a contract, substantive regulatory deals may be vehicles for “amoral” wealth transfers among interest groups. Unlike the present WTO, which works to minimize the influence of one particular form of interest group—protectionists—the transformed organization would facilitate agreements that empower special interests.

In Part III, we discuss the potential of the dispute settlement system as a credibility-enhancing device. We demonstrate why the dispute settlement system might actually discourage cross-issue bargains by vesting extraordinary discretion in WTO tribunals. This discretion would entail an intolerable lack of predictability for WTO members, particularly given the sensitivity of the matters involved. We explain why developing countries would be especially chary of signing on to such a regime, and show how extending the dispute settlement system to cover a variety of non-trade issues might upset the sensitive dynamic in which exporters work to assure national compliance with WTO obligations.

Finally, in our conclusion, we briefly address another possible model for the future of the WTO, one that we have previously described at length. Rather than transform itself into a global government—a World Trade, Economic, Environment, Human Rights, Labor, and Public Health Organization—the WTO should stick to its limited but important role: reducing barriers to trade among nations.

Scroll to Top