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SOUTH ASIAN UNIVERSITY
FACULTY OF LEGAL STUDIES
SYLLABUS
INTERNATIONAL ECONOMIC LAW
COMPULSORY PAPER-II
M.PHIL/PhD PROGRAMME
MONSOON SEMESTER
Course Title:
Course Code:
Course Instructor:
Course Duration:
Credit Units:
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Prerequisites:
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Equivalent Courses:
INTERNATIONAL ECONOMIC LAW
Dr.V.G.Hegde
One Semester
4
English
Nil
Nil
N/A
OBJECTIVE
The objective of the course is to provide an overview of the content, meaning and application of
international economic law. The scope and limits of international economic law essentially lie within the
ambit of international economic relations. Sates, therefore, form the core of the economic activities and
relations. It is also important to note that the phrase “international economic law” is understood in this
course in its broadest sense to include various aspects of international trade, financial and investment
laws. Within the broad spectrum of international law, it is to be noted that both international trade law
and international commercial law have evolved into a separate and yet specialized areas of study. This
course may not traverse the entire length and breadth of these areas, although an attempt will be made
to study some of the basic principles that have had an impact on the international economic law. At its
broadest sense, as defined by available sources, international economic law essentially seeks to “deal
with the conduct of sovereign States in international economic relations and also the conduct of private
parties involved in cross-border economic and business transactions”.
At the more basic level, to understand the meaning, formulation and working of the international
economic law it is inevitable for us to study its evolutionary and historical aspects. As it has been argued
in the context of public international law, it would be appropriate to assert in the case of international
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economic law as well that majority of the developing countries had no role to play in the formulation of
some of the basic principles of international economic law. This is also true and equally applies to the
formation and working of international economic institutions. Both these principles and the institutions
that seek to apply them evolved in a certain context in the aftermath of post Second World War. The
rationale of evolving these international economic institutions and the principles on which they were
based should be understood in the context of global politics, trade and economic relations. New Stats
that emerged post Second World War sought to challenge some of these political, legal and regulatory
assumptions that led to the formulation of these principles and the economic institutions created on the
basis of these economic and trade assumptions. Some of these understandings of the developing and
newly emerging countries have been recorded and reflected in the debates and resolutions of the
United Nations General Assembly (UNGA). The UNGA resolutions on Permanent Sovereignty over
Natural Resources (PSNR) in the 1960s followed by the idea of New International Economic Order (NIEO)
and Charter of Economic Rights and Duties of States in the 1970s need consideration and analysis to
understand the continued disparities that existed in the formation and application of international
economic law principles.
The Course, besides examining international economic legal principles, will also study the context,
formation and impact of various international economic institutions with specific focus on South Asian
countries. The formulation and implementation of the international economic legal principles
concerning varied subject matters have been moved from one economic or trade institution to another
taking into account the impact and change it could bring to domestic legal and regulatory framework.
The negotiations and the formulation of minimum standards concerning intellectual property rights
(IPRs) is one fine example. Besides IPRs, these subject matters include goods and services, investment
measures and dispute settlement.
The South Asian countries, like other developing countries, were also part of this process and were also
impacted in terms of these global economic legal frameworks. Considering these, an attempt will be
made in this course to understand specific substantive and technical issues from the perspective of
South Asian countries. The negotiating stance taken by the South Asian countries, both collectively and
individually, on some of these substantive issues would be examined. The impact of such stance on their
domestic legal and policy framework also would be examined to the extent possible. There have been
efforts, considering the need to evolve a common procedural framework to facilitate smooth movement
of global transactional chain and trade, to bring in uniformity or harmonization in these procedural
frameworks. Such uniformity already exists in maritime practices for a very long time through various
treaties and conventions among countries. However, efforts are underway to extend these efforts to
other areas as well. Besides maritime practices, we could note many other areas which are being
considered for harmonization such as for example, various principles in the field of private international
law, legal and policy issues relating to regional economic integration, international investment
measures, competition, electronic commerce, international monetary regulation and international
commercial arbitration.
These challenges at the global and international level have been impacting the domestic legal regulatory
frameworks. This is taking place in terms of implementation and has been constantly reducing or
shrinking policy space for the developing countries, including South Asian countries, to frame their laws
and regulations keeping in view their own needs and interests. These changes and the process of
harmonization in the context of emerging principles of international economic law are being articulated
on the basis of globalization. The issues of globalization and its impact on the South Asian countries in
understanding and applying international economic law will also form part of this course. The course will
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also offer a brief understanding of theoretical and conceptual framework of international economic law
in the specific context of right to development. The specific focus in this regard will be to the sharing of
natural resources including transnational water resources.
The course on International Economic Law is primarily based on the perspective of South Asian countries
with specific focus on studying their conduct in international economic relations. Besides others, one of
the primary concerns of the international economic law is about studying regional economic integration.
The present course will look at the basic structure of South Asian Association of Regional Cooperation
(SAARC) and will also study the impact of working of the South Asian Free Trade Area (SAFTA). It should
be noted that the content of International Economic Law encompasses a wide spectrum of areas such as
for example, trade in goods and services, international financial law, economic and regional integration,
dispute settlement and conflict resolution (with focus on alternative dispute resolution mechanisms),
investment law and regulation of foreign investment. The proposed course may deal with major part of
these areas, though not necessarily all the above specified areas.
COURSE CONTENT
WEEK-1 & 2
Definition, Scope and History of International Economic Law with specific focus on theoretical
framework; Concept of sovereignty in International Economic Relations; Globalization, International
Economic Law and South Asia
WEEK-2 & 3
Permanent Sovereignty over Natural Resources (PSNR); New International Economic Order (NIEO);
Charter of Economic Rights and Duties: United Nations Conference on Trade and Development
(UNCTAD); Approach of South Asian Countries
WEEK-4 & 5
Evolution of General Agreement on Trade and Tariffs (GATT), World Trade Organization (WTO);
Structures, Principles and Working of WTO; South Asian Countries and WTO.
WEEK- 6
International Economic Institutions: An Overview, Evolution and History, Role and Participation of
South Asian Countries
WEEK- 7
International Monetary Fund (IMF) and International Bank for Reconstruction and Development (IBRD)
Structure and Functions; Impact on Developing Countries with specific focus on South Asian countries.
WEEK- 8 & 9
United Nations Commission on International Trade Law (UNCIRAL); Structure and Functions. Brief
Survey of International Conventions adopted by UNCITRAL; South Asian Countries and UNCITRAL
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WEEK-10
Regional Integration and International Economic Law – with specific focus on South Asian Free Trade
Area (SAFTA)
WEEK-11
Dispute Settlement and Conflict Resolution; International Commercial Arbitration and Alternative Modes
of Resolving Disputes; Negotiation, Mediation, Conciliation, Arbitration and Adjudication
WEEK-12
Right to Development and Developing Countries
Readings
1. Mitsuo Matsushita, Thomas J. Schoenbaum and Petros C. Mavroidis, The World Trade
Organization: Law, Practice and Policy (Oxford University Press:2006).
2. Simon Lester, Bryan Mercurio, Arwel Davies and Kara Leitner, World Trade Law: Text,
Materials and Commentary (Hart Publishing House: 2008)
3. Bernard Hoekman and Michel Kostecki, The Political Economy of the World Trading
System (Oxford: Oxford University Press, 2005)
4. John H. Jackson, The World Trading System: Law and Policy of International Economic
Relations, 2d edition(Cambridge: MIT Press, 1997).
5. Anand R.P. New States and International Law, (Vikas Publishing Hosue: Delhi:1972);
6. Anghie, Antony, B.S.Chimni, Karen Mickelson and Obiora Okafor (eds.) The Third
World and International Legal Order: Law, Politics and Globalization (Kluwer Law
International, 2003)
7. Koul, A. K., “Developing Countries in the GATT/WTO — Their Obligations and the
Law”, Indian Journal of International Law, 2004, vol.44, pp.451-487.
8. Kenneth W. Dam, The GATT: Law and International Economic Organization (Chicago:
University of Chicago Press, 1970).
9. Christper Arup, The New World Trade Organisation Agreements (Cambridge University
Press:2000).
10. Robert E. Hudec, The GATT Legal System and World Trade Diplomacy (Salem, New
Hampshire: Butterworth, 2d edition, 1990).
11. Baxi, Upendra, “The New International Economic Order, Basic Needs and Rights: Notes
towards Development of the Right to Development” Indian Journal of International Law,
1983, vol. 23, p.225;
12. Chaturvedi, Sachin and S. K. Mohanty, “The WTO and Trade in Electronically Delivered
Software: Emerging Challenges and Policy Options – An Indian Perspective”, Journal of
World Trade, 2008, vol.42, no.5, pp.927-951.
13. Chimni B. S., “The World Trade Organization, Democracy and Development: A View
from South”, Journal of World Trade, 2006, vol.40, no.1, pp.5-36.
14. Gopalan, Sandeep, “Transitional Commercial Law: The Way Forward”, American
University International Law Review, 2003, vol.18, no.4, pp.803-849.
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15. Hegde V.G, “Intellectual Property Rights: National and International Legal Aspects
Relating to Patenting of Life Forms”, Indian Journal of International Law, 1998 vol.38,
no.1, p.28;
16. Mattoo, Aaditya and Arvind Subramanian, “The WTO and the Poorest Countries: The
Stark Reality”, World Trade Review, 2004 November, vol.3, no.3, pp.385-407.
17. Rao Pemmaraju Sreenivasa, “The Role of Soft Law in the Development of International
Law: Some Random Notes”, in Fifty Years of AALCO: Commemorative Essays in
International Law, Asian-African Legal Consultative Organization, New Delhi 2007;
18. Sornarajah. M, The International Law on Foreign Investment (Cambridge: Cambridge
University Press, 2010).
19. Subedi, Surya P. International Investment Law: Reconciling Policy and Principle (Hart
Publishing House: Oxford: 2008)
20. Watal, Jayashree, Intellectual Property Rights in the WTO and Developing Countries
(London: Kluwer Law International, 2001).
21. UNCTAD, The Outcome of the Uruguay Round: An Initial Assessment (Geneva:
UNCTAD, 1994), 41-105, 205-219
22. www.wto.org (for all GATT/WTO cases and other primary documents)
23. www.unctad.org (for the perspective of developing countries)
24. www.southcentre.org (for the perspective of developing countries)
25. www.uncitral.org
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