The ASEAN-China Investment Agreement: A regionalization of China��s BITs

This paper analyzes the provisions of the Agreement on Investment of the Framework Agreement on Comprehensive Economic Cooperation between China and the Association of Southeast Asian Nations (the “ASEAN”), especially those on the scope of application, national treatment, Most Favored Nation (MFN) treatment, expropriation, and investor-state dispute resolution. The paper then compares the new agreement with other international investment agreements concluded by China or ASEAN. In comparison with existing Bilateral Investment Treaties (BITs) between China and individual ASEAN member states, there are significant changes in the Investment Agreement which provides a higher standard of investment protection. Such an investment protection is common in the new generation of Chinese BITs, which were signed by China since 2000. However, unlike some other investment agreements in free trade arrangements, the Investment Agreement rarely touches upon the investment liberalization, although the Framework Agreement of ASEAN-China FTA provides for creating a liberal investment regime. This paper concludes that negotiating an investment agreement in China’s Free Trade Agreements (FTAs) is regarded as an opportunity to update its old BITs, but China is not yet prepared to undertake investment liberalization in its FTAs. The ASEAN-China Investment Agreement is, rather, an extension of China’s BITs at the regional level, which is a demonstration of China’s growing influence at this level.     

No More Negotiated Deals?: Settlement of Trade and Investment Disputes in East Asia

Many argue that East Asian countries have come to adopt ‘aggressivelegalism’ in trade and investment policy, in the sensethat they have come to settle their trade and investment disputesthrough the dispute settlement mechanism (DSM) of the WTO andthe other third-party procedures. Scrutiny of the dispute casesof these countries shows, however, that East Asian legalismis not so aggressive, that it varies country by country, andthat there still exists room for negotiated deals in settlingtrade and investment disputes among them. On the other hand,the recent move toward regional integration through free tradeagreements (FTAs), economic partnership agreements (EPAs), andbilateral investment treaties (BITs) in East Asia may lead tothe adoption of a more aggressive legalism in the region, inparticular in settling investment disputes, disputes relatingto intellectual property rights, and trade remedies.     

Diego Garcia: British-American Legal Black Hole in the Indian Ocean?

Environmental risks from US military construction on the atollof Diego Garcia (British Indian Ocean Territory) since 1971include damage caused by large-scale ‘coral mining’,the introduction of invasive alien plant species, continuoustransits of nuclear material and unreported major fuel spills;these risks are now compounded by those of sea-level rise andocean acidification due to global climate change. The US andUK governments have evaded accountability by way of a persistent‘black hole’ strategy, contending that some nationallaws and international treaties for the protection of humanrights and the environment do not apply to the island—aposition confirmed by a controversial appellate judgment ofthe House of Lords in October 2008, essentially relying on ‘prerogative’colonial law. This article draws attention to the fallacy ofthe black-hole syndrome, and to its potentially fatal consequencesfor the British claim to a 200-mile environment protection zonein the Chagos Archipelago.     

The Present and Future of The Investor-State Dispute Settlement Paradigm

While the World Trade Organization (WTO) system remains faithfulto the long-standing traditional paradigm of state-to-statedispute resolution, dispute resolution mechanisms in the areaof international investment are undergoing a radical change.Traditionally, the paradigm of ‘diplomatic protection’has served as a basis for the settlement of investment disputesamong states. In earlier commercial agreements, including theFriendship, Commerce, and Navigation Treaties (FCNs) concludedfrom 1940s to 1960s, the resolution of international investmentdisputes took the form of state-to-state dispute resolution.This paradigm shifted in the 1970s when direct investor claims,modelled on treaties that European countries had been puttingforward since 1959, were allowed under a series of bilateralinvestment treaties initiated by the United States. This shifthas been reflected in subsequent efforts to reach a multilateralagreement on investment (MAI) and in many free trade agreements(FTAs). Also, in the area of international human rights law,it is an increasing trend to allow an individual to have directrecourse to international human rights protection bodies, suchas the Human Rights Committee established under the InternationalCovenant on Civil and Political Rights, after the exhaustionof domestic remedies. The allowance of direct claims has helpedto make up for the typical shortcomings of the diplomatic protectionmechanism where, the espousing state has frequently exercisedexcessive discretion in deciding whether to advance claims dueto considerations of a political nature, unrelated to the particularcase, so that this mechanism can increase international friction.On the other hand, the strong point of diplomatic protectionhas been its capacity to screen out frivolous or dishonest claimsby individuals. The question whether various international disputesettlement mechanisms may eventually converge into an effectivesystem based on a direct claim procedure is a vexing one. Itis uncertain whether the model of investor-state dispute settlement(ISDS) can play a pioneering role in this ongoing process. Anypertinent answers to such questions require a thorough comparisonof the benefits and drawbacks of such a development. Lessonsfrom the experiences under the ISDS system and its modificationefforts should be fully taken into account so the newly emergingdispute resolution system will not lead to tension between nationsin an area where precedent is scant, but the need is great.     

Multilateral Rules on Investment: Is Forward Movement Possible?

This paper explores the forces that have to date impeded thedevelopment of a multilateral set of rules on investment. Thepaper chronicles the policy- and rule-making debates that tookplace in the World Trade Organization’s (WTO’s)Working Group on Trade and Investment (WGTI) and advances anumber of political economy reasons that contributed to thederailment of investment discussions under the Doha DevelopmentAgenda (DDA). The paper highlights elements of a development-friendlyinternational investment regime and identifies various scenariosfor imparting forward movement to international negotiationson investment issues at the bilateral, regional and multilaterallevels.     

Offshore IT Outsourcing and the 8th Data Protection Principle - legal and regulatory requirements - with reference to Financial Services

In the global sourcing world, particularly in financial services,offshore outsourcing and associated data transfers are commonplaceand increasing, searching out lower cost third countries, whichmay have even fewer data protections. In such an environment,the1998 Data Protection Act’s 8^th Principle and associated7^th Principle security provisions become critical protectionsfor UK data subjects. Yet the few statistics that exist indicate that unrestrictedtransfers appear to occur from several EEA countries. Furthercriticisms are that the UK 1998 Act does not fully align withthe EEA Directive, the Schedule 4 exceptions are overly wide,the country assessment process can be ignored with the InformationCommissioner’s ‘blessing’ and his powers andresources are limited. Financial Services may be a contrasting exception, where theindustry regulator, the FSA, ‘incidentally’ enforcesmany of the data protection requirements of overseas data transfers,has significant direct enforcement powers and a model ADR approachthrough the Financial Ombudsman. Although the UK banking lawand regulation meets many privacy requirements, it falls shortof the full data protection requirements, clearly illustratingthe value that data protection legislation brings. The alternative self regulatory approach exemplified by theUS Safe Harbor illustrates the weaknesses of pure self regulation,recognized by the US financial services which are moving towardscentralized data privacy supervision with the Gramm-Leach-BlileyAct, reinforcing the worldwide trend towards a more EEA-stylesupervised personal data protection world. In short, seven years after the 1998 Act was passed, we areready for an appropriate mid-course correction, with the 8thPrinciple (& 7^th Principle) needed more than ever in thegrowing outsourced world.     

International Law and Detention of US Asylum Seekers: Contrasting Matter of D-J- with the United Nations Refugee Convention

US refugee law reflects an ever-increasing conception that theapplication of international standards would constitute an unacceptablerisk to national security. CSR Article 31(2)’s requirementthat refugees ‘shall not’ be detained unless ‘necessary’appears among the chief casualties of such suspicions. US jurisprudenceremains strikingly devoid of reference to Article 31, and 2003’sMatter of D-J- is a prime example. D-J- was an administrativedecision in which the US Attorney General held that nationalsecurity required all US asylum seekers who successfully arrivevia boat must be subject to mandatory detention throughout thecourse of removal proceedings. Despite US accession to the Protocol,Article 31(2) was not mentioned. This article explores what might have happened to D-J- if theRefugee Convention had indeed been applied to his case. Utilizingthe international methodology for treaty interpretation, itapplies Article 31(2) to various aspects of the Attorney General'sdecision. Part 2 argues that under the Supreme Court's CharmingBetsy rule, statutory discretion to detain must be interpretedconsistently with US international obligations. Part 3 concludesthat Article 31(2) of the Refugee Convention grants asylum seekersa right to release whenever their detention is not ‘necessary’.Part 4 proposes a three-part ‘pyramid’ approachto explain the elemental phases of the decision to detain anasylum seeker and examines necessity at each stage. Finally,Part 5 discusses Article 31(2)’s implications regardingevidence and proportion. The premise throughout is that, hadit been applied, the Refugee Convention could have protectedthe interests of both D-J- and ‘national security’.     

Exclusion payments in patent settlements: a legal and economic perspective

Legal context. The application of antitrust law to assess settlementsof patent litigation raises difficult issues concerning theappropriate balance of patent law and competition policy. Recentprivate and public invocations of US antitrust law to challengesettlement agreements covering pharmaceutical patents have broughtthese issues to the forefront. The agreements share the commonfeature of an ‘exclusion payment’ from a brand-namedrug manufacturer (the patentee) to a generic drug manufacturer(the accused infringer) in exchange for a promise by the genericcompany to refrain from marketing its product for some time.US federal courts that have examined these agreements have variedin their approach and conclusions regarding the appropriateantitrust analysis to be applied to these settlements. Key points. This article argues that informed antitrust analysisof such agreements must take due note of the ‘probabilistic’nature of patent property rights. Practical significance. The article concludes that exclusionpayments fall outside the scope of a patent's exclusionary scopeand thus are subject to antitrust scrutiny. It demonstratesthat barring anticompetitive exclusion payments in settlementnegotiation prevents collusive bargains that harm consumer welfarewithout discouraging efficient settlements.     

From unilateral liberalization to regional free trade agreements: a Latin America perspective

This paper provides an overview of changes in Latin American trade regime. The inward-looking import substitution industrialization (ISI) approach to development was replaced in the 1990s by an outward-looking strategy. The protectionist policies of the ISI strategy generated an anti-export bias, but unilateral trade liberalization (UTL) reduced this bias considerably. An issue discussed is why the pro-ISI consensus of the 1960s was replaced by the pro-export consensus of the 1990s? There has been a surprising proliferation of (bilateral) free trade agreements (FTAs) during the 1990s. In the paper it is argued that UTL and FTAs are complementary strategies. Latin America has comparative advantages in natural resources. A new debate over the development strategy has emerged. Information and communication technologies (ICT) are seen as crucial to a country’s growth in the twenty-first century. So, how can Latin American countries incorporate such technologies into their economies. Is it possible to make the leap from producing natural resources to producing ICT? In today’s globalized world, it is essential for Latin American countries to increase its exports. This paper reviews actions on different fronts; some that should be carried at the domestic level, and also, measures at the external level which require that the developed countries provide better market access to Latin American exports.     

Work/Family Policy in France: From State Familialism to State Feminism?

When one looks at the policies that target the relationshipbetween work and family (here labelled ‘work/family policies’),contradictory views come from France. On the one hand, the staterecognition of family interests is very strong, and was initiallyrooted in familialism, an ideology that promotes the familyas an institution, and has often played against women’srights. On the other hand, women’s – and especiallymothers’ – labour force participation has alwaysbeen relatively high compared to other western countries. Toaccount for this ‘French paradox’, this paper putswork/family policies into historical perspective, in order toanalyse them as a mix of policies coming from various publicpolicy institutions (work, education, family). While state familialismhas always been strong in France, it has been challenged andshattered by several social and political trends since the 1960s.Among these is the development of ‘state feminism’,with the creation of governmental bodies endowed with the formalmission of furthering women’s rights. Based on an empiricalstudy of these institutions, this paper shows how they reframedwork/family policy in terms of a policy of equality in employment.     

NAFTA,tourism, and environment in Mexico

The purpose of this paper is to determine how NAFTA influenced the Mexican tourism sector and its effects on the environment. The linkage between the tourism sector and NAFTA is done through the analysis of foreign direct investment and cross-border trade in services. The quantitative section of the paper focuses on analyzing commercial presence in the form of hotels and restaurants, as well as the use of services abroad. The paper concludes that NAFTA represented greater certainty to investors but was not the main driver behind the investments in tourism services. The analysis of visitors from US and Canada in Mexico recognizes that NAFTA did not have significant impact on the tourism flow. NAAEC, on the other hand, serves in this research as a qualitative connection between tourism sector and the environment for attending to citizen submissions on failures in environmental law enforcement in Mexico regarding tourism projects. It is included with an economic-environmental balance in Cancun—which shows that the greatest environmental impact is of global importance: CO₂ released into the air by air transportation, followed by the local impact of water consumption, waste generation, and electricity usage, in that order.     

Treaty Interpretation and the WTO Appellate Body Report in US - Gambling: A Critique

‘Before the game begins players should agree on a dictionaryto use in case of a challenge.’ (from the Official Rulesof SCRABBLE®)

Treaty interpretation in WTO law continues to represent a topicof highly theoretical and practical importance. The Panel’sand the Appellate Body’s reports in the recent US –Gambling dispute have critically turned on ascertaining themeaning of the United States’ GATS Schedule and ArticleXVI GATS on the basis of the public international law rulesof treaty interpretation as codified in the Vienna Conventionon the Law of Treaties. The paper’s principal aim is toreview the interpretative approach followed in particular bythe Appellate Body in reaching its decision in US – Gambling.Its main argument is that, although the Appellate Body appearsto be trying to emancipate itself from a rigorous textual approach,it has not yet embraced a holistic approach to treaty interpretation,one in which the treaty interpreter looks thoroughly at allthe relevant elements of the general rule on treaty interpretationpursuant to Article 31(1) of the Vienna Convention.     

Foe or Friend of GATT Article XXIV: Diversity in Trade Remedy Rules

While the WTO Member countries continue to increase their FTAarrangements with divergent frameworks, they have begun to adoptmodified WTO trade remedy systems in FTAs. Although the contentand degree of these modified systems may not be significantyet, they still set very important precedents, or ‘seeds’,for ‘rule diversification’ in the world tradingsystem. Such modification typically aims to further liberalizemutual trade between FTA parties and thereby contribute to afreer world trading system. However, such rule diversificationappears to be inconsistent with the mandate of Article XXIVof GATT by worsening economically inferior trade diversion.The reinterpretation of the legal obligations in Article XXIVcommensurate with economically more reasonable structures impliesthat trade remedy rules in FTAs should be applied on a non-discriminatorybasis. Moreover, an FTA safeguard measure must precede a WTOsafeguard measure to ensure optimal competitive conditions amongtrading partners. In sum, the right channel for improving thecurrent WTO trade remedy systems is not the FTA forums but theWTO negotiation.     

The evolution of the environmental industry in the post-NAFTA era in Mexico

The market for environmental goods and services in Mexico almost doubled in size between 1995 and 2005, amounting to $4.7 billion in 2005. But just how large a role did the North American Free Trade Agreement (NAFTA) play directly in this cycle? According to environmental industry participants in Mexico, while not meaningless, the NAFTA law and its implementation were not a major factor in directly driving environmental market growth. First, the environmental market grew only marginally higher than the gross domestic product (GDP) during 1995–2005. Second, it was largely two factors that paced the environmental market growth: an increase in certain domestic environmental programs that largely separate from NAFTA and an influx of foreign manufacturers into Mexico, some of which brought a higher standard of environmental operations with them. Drivers of environmental markets are both economic and regulatory, and in both instances, they are multifaceted, so that no one policy instrument or economic trend is solely responsible for major trends within the environmental industry. However, it is apparent that NAFTA has had some role in accelerating the evolution of environmental markets in Mexico, but arguably a lesser influence than it could have been. Notably, NAFTA had little impact on stimulating growth on the domestic environmental industry in Mexico as trade deficits increased during 1995–2005. The lesson for policymakers may be that trade agreements need some more active entity in assuring not just some uniformity in environmental standards and in the compliance with same, but also in the environmental industry capacity to meet those compliance objectives.     

Family Values in the Classroom? Reconciling Parental Wishes and Children's Rights in State Schools

This article examines the extent to which the law should permitdivergence in various aspects of state education by allowingschools to accede to a parent’s request for differenttreatment for his or her child. With a view to this the articleexplores some of the areas where contention is likely to occur;describes the current legal frameworks for responding to theserequests; and articulates the competing rights and interestsat stake when a parent makes a request for his or her childto be exempt from part of the education on offer at a publiclyfunded school. It emerges that the current legal responses arenot only inconsistent but are also in many instances incompatiblewith the United Kingdom’s international human rights obligations.The article concludes by suggesting a new model for the resolutionof these disputes which provides a mechanism for balancing parents’wishes with children’s rights and the broader public interestsat stake.     

The 'final' privacy frontier? Regulating trans-border data flows

This article examines the threat to privacy posed by the transferof personal information from one jurisdiction to another. Despiteinternational trends towards greater protection of personalinformation, significant challenges to personal privacy arisein this context. These include the use of outsourcing by businesses,the encroachment of security laws and the potential ‘spill-over’of technologies developed for combating terrorism into the privatesector. Also significant are technologies enabling the ‘profiling’of individuals and ‘data mining’ across borders.Against this backdrop, the article considers existing jurisdictionalresponses towards regulating personal information flows acrossborders. It considers various actual or proposed solutions including‘safe-harbours’, contractual mechanisms and extra-territorialapplications. The article concludes that many of the existingapproaches to regulating trans-border information flows areto some extent deficient and suggests the need for a new ‘fourthgeneration’ set of data protection protocols. In formulatingthe latter, analogies are drawn from other relevant areas ofthe law in order to furnish creative solutions to the problem.     

Misappropriation of Institutions: Some Lessons from the Environmental Dimension of the NAFTA Investor-State Dispute Settlement Process

Trade regimes at all levels have confronted the dual challenge of rapidly expanding foreign direct investment, and the vigorous growth of international environmental regimes. Attempts to develop a global investment regime have encountered resistance, not least from environmental interests. At the same time, regional trade regimes have sought to address both the environmental and the investment agenda but in a very different manner. This article looks at problems encountered with the investor-state dispute settlement process established by the North American Free Trade Agreement (NAFTA). The institutional dimension of this process is largely drawn from the General Agreement on Tariffs and Trade (GATT), and existing international institutions for commercial arbitration. The article traces some of the difficulties encountered in attempting to use institutions designed for a specific purpose and implemented in one organizational context, to achieve a different purpose in another organizational context. It discusses the problems that arise when institutions appropriate for settling commercial disputes between private actors are used as the basis for balancing private interests and public goods, the environment in particular. It highlights the importance of a more developed understanding of the interplay between institutions and organizations at the international level so as to avoid undesired outcomes.     

King Cotton, Developing Countries and the 'Peace Clause': The WTO's US Cotton Subsidies Decision

Although the World Trade Organization (WTO) is a powerful vehiclefor promoting economic development, the Uruguay Round has beenperceived by developing country WTO members as an unequal bargain.Especially with respect to agriculture, the Uruguay Round yieldedonly limited concessions. In September 2003, Doha Round effortsstalled at Cancún when developing countries coalescedto oppose a proposal that insufficiently liberalized trade inagriculture. In March 2005, the Dispute Settlement Body adopteda panel decision upholding Brazil’s legal challenge ofUS subsidies to cotton producers. The US Cotton Subsidies decisionrepresents a dramatic victory for Brazil and other developingcountry WTO members. The timing of the decision, coincidingwith ongoing Doha Round agriculture negotiations, ensures thatit will influence any outcome of the Round. This article examinesthe US Cotton Subsidies decision, describes the subsidy programsat issue in the dispute, reviews applicable WTO rules, and outlinesthe major findings of the panel and Appellate Body. The articleconcludes that Brazil’s victory in US Cotton Subsidiesmay represent a broader shift within the WTO away from a systemdominated by the US and EC toward a system that increasinglyis influenced by emerging market economies.     

Cyber-trespass and 'Unauthorized Access' as Legal Mechanisms of Access Control: Lessons from the US Experience

The common law doctrine of trespass to chattels has recentlybeen revived and applied by courts in the United States (US)to cover intrusions (in the form of electronic signals) to computersystems connected to the Internet. These cases represent judicialrecognition of the need to protect certain unwanted intrusionsin cyberspace, though the principles developed therewith areremarkably expansive. As such, they overlap with the conceptof ‘unauthorized access’ under computer misuse legislationin the US and elsewhere. This overlap has yet to be judiciallyacknowledged. Since the US, the United Kingdom and other commonlaw countries not only share a common law ancestry but also‘unauthorized access’ principles as the primarytrigger for computer misuse, this paper seeks to examine theconsequences of developing a broad cyber-trespass doctrine beyondthe US, and its corresponding implications for judicial interpretationsof ‘unauthorized access’ in the common law world.     

论投资者与东道国间争端解决机制及其影响

近年的国际投资协定中规定的投资者与东道国间投资争端解决机制,从实质看,是将此类争端解决进一步推向国际化。这种争端解决机制的国际化发展有助于强化投资者的保护,创造有利于吸引外资的投资气候,但它同时也是一把双刃剑,对于东道国关于外资的管理、社会和环境的管理、公共资源的利用都可能产生挑战并带来深远的影响。因此,我国在设计与利用国际仲裁机制时,应注意在国家主权的行使与投资者权利保护二者间达到平衡;应积极推动此类投资争端解决机制的改革和完善,妥善解决各种实体与程序问题,维护投资东道国政府为维护公共利益进行管理的权利。同时,还应尽可能地健全和完善能为外国投资者所信任的当地争端解决制度,尽可能地促使投资争端在当地解决。