Public Purpose in International Law
R E T H IN K IN G R E G U L A T O R Y S O V E R E IG N T Y
IN T H E G L O B A L E R A
P E D R O J. M A R T I N E Z - F R A G A
C. RYAN R E E T Z
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U N I V E R S I T Y PRESS
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Contents
Foreword by David D. Caron
Acknowledgments
Introduction and Sketch of Historical Origins
l
Public Purpose in NAFTA
A.
B.
C.
D.
E.
F'.
C.
IT
Public Purpose in the Context of Reservations
Chapter Eleven of the NAFTA Does Not Develop an
Objective Test
Public Purpose in the NAFTA Lacks Hierarchical
Structure
T he C hapter Eleven Framework Indiscriminately
Incorporates and Com m ingles Terms of Art from the
GATT: An Unwanted Cross-Pollenization
T he NAFTA Standard Public Purpose Exceptions
and the Treaty Reservation Public Purpose Category:
H armonizing a Dichotomy
Beyond the NAFTA C hapter Flleven Framework:
T he NAFTA’s Anatomy Provides for an Expansive
Construction ot the Public Purpose Doctrine and the
“Legitimate Objective” Standard
Conclusions and Observations
The Jurisprudence of Public Purpose in the NAFTA
1. T he Metalclad Legacy: O ne Extreme
2. An “Effects Test” Beyond the Purview of Public
Purpose
3. Revisiting M ethanex through the Prism of the Publi
Purpose Doctrine
viii
C ontents
I. T he M ethanex Approach and a Swing of the
Pendulum
). Beyond Metalclad and M ethanex: The NAFTA
Ju risp ru d e n c e
1. T he Public Purpose Legacy o f Metalclad and
Methanex
2. A Broader Examination of the NAFTA’s
Jurisprudence and O ther Investor-State Decisional
Law: In Search of a Viable Public Purpose
Framework
3. T he Teemed C ontribution
4. The Police Power Dichotomy and Feldman v.
Mexico
5. Reflections on Conventional International Law’s
Use of Public Purpose
Identifying Public Purpose in C ustom ary International
Law: Select International Instrum ents
A. T he Place of the Public Purpose Doctrine in
Customary International Law
1. Revisiting Fundamentals of Customary International
Law
B. Foundational Concerns Endem ic to Customary
International Law Challenging the Developm ent of
a Public Purpose Doctrine
C. Discovering and Reviving the Public Purpose
Doctrine in International Instruments
D. The Many Names of the Public Purpose Doctrine:
Exploring Uniformity and M ultifarious
N om enclature
E. Evidence of Scope and Substance of the Public
Purpose Doctrine in Select International Instruments
1. Identification, Scope, and C ontent of the Public
Purpose Doctrine within International Instruments
C oncerning Transnational Trade and Investment: A
Doctrine T hat Expands Sovereignty within
Instruments T hat Limit State Authority
2. Public Purpose in UN C onference on Trade and
Development and World Trade Organization
Instruments
71
•So
84
85
9'
104
109
n3
ID
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118
124
126
129
129
129
C ontents
L.
G.
3. Public Purpose and the United Nations Conference
on T rade and Development
4. U N CTA D World Investment Report 2012
5. T he Public Purpose Doctrine and Sustainable
Development
6. T he Public Purpose Doctrine and Lessons from
U NCTAD
W hat Does It All Mean?
1. T he South African Development C om m unity
Model Bilateral Treaty Tem plate
2. T he Sustainable Developm ent Expression of the
Public Purpose Doctrine in BITs
a. T he Canada-China BIT
b. T he Colombia-Japan BIT
c. T he Croatia-Azerbaijan BIT
d. T he Japan-Independent State of Papua New
G uinea BIT
T he Public Purpose Doctrine in W TO International
Instruments
1. W T O Doha Ministerial Declaration: November 14,
2001
2. Public Purpose and the W TO Agreement on
Trade-Related Aspects of Intellectual Property
Rights (1994)
3. The Public Purpose Doctrine in the W TO General
Agreement 011 Trade in Services (1994)
D efining the Profile of the P ublic Purpose D octrine
in H um an Rights Conventions
A. Public Purpose D octrine as a Fulcrum for a
I lierarchy ot I Inman Rights
1. T he African C harter on H um an and Peoples’ Rights
2. T he Findings and Effects of the European and
American I Inman Rights Conventions and the
African C harter 011 the Customary International I ,aw
Developm ent of the Public Purpose Doctrine
3. T he Jurisprudence of the European C ourt of I lum an
Rights and Public Purpose Constraints on
Regulatoiy S0vereigntv
ix
D1
'3 9
'45
'58
160
161
'7 7
178
.85
190
193
195
196
200
202
206
227
228
C ontents
X
a. Farrugia v. M alta
1). Leyla Sahin v. Turkey
4
5
T h e C om plex Interaction betw een the Public Purpose
D octrine and BITs: D iscerning O rder and Structure
A. An Analysis of the Relationship between Structure
and Content: A Fragm ented Framework w ithin a
Decentralized Body of International Law and a
Legacy Public Purpose Doctrine
1. Unsettled Structural Issues in the Framework of
Bilateral Investment Treaties
2. The Findings of Empirical Analysis of Public
Purpose in BIT Clauses
B. Public Purpose in the Form of Sustainable
Developm ent Language in BITs and Combinations
of Sustainable Development; Health, Safety, and
Environm ent; and Labor
1. A Rich Preamble: Sustainable Development, Health,
Safety, and Environment; and Labor
2. T he GATT Article XX Exceptions in BITs
C. Com prehensive Conclusions
264
290
P erm an en t Sovereignty over N atural Resources
293
A.
295
295
B.
C.
6
236
241
PSNR: T he Structural Foundations of a Doctrine
l. General Assembly Resolutions 523 and 626
T he Developm ent of the N om enclature “Perm anent
Sovereignty over Natural Resources” and the
C reation of a Commission
Seminal Decisional Law on PSNR
T he Role of P ublic Purpose in Foreign Investm ent
P rotection Statutes: C an FIPS R ehabilitate the
D octrine?
A. T he Public Purpose of FIPS Investor Protection
B. FIPS Carve-outs and Public Purpose
C. Dispute Resolution Clauses in FIPS and Public
Purpose
D. T he T eachings of FIPS Public Purpose Analysis and
the Use of FIPS as Remedial Doctrinal Instruments
C onclusion
254
254
254
256
258
259
301
314
318
323
33 '
339
344
349
C ontents
xi
A p p e n d ix I A C om parison betw een the Perform ance
Requirem ents Articles of the Canada-Jordan
and the Coloinbia-Japan Bilateral
Investm ent Treaties
355
A pp e n d ix II A n Em pirical Review of the Preem inence
of the Public Purpose D octrine throughout
the Ever-Expanding Universe of Bilateral
Investm ent Treaties
359
A ppe n d ix III A Spatial C om parison of Provisions Relating to
Investm ent Protection, Incentives, and D ispute
Resolution in Foreign Investm ent Prom otion
Statutes and Bilateral Investm ent Treaties
A p pe n d ix IV T a b le o f C ita tio n s
Index
388
424
437