A series of recent trade developments again raises the importance of internationalrules and international judicial institutions to the functioning of the global trading system in an orderly way. (Domestic courts are also important.) This is occurring in an increasingly disorderly international political system. This time it involves primarily the Russian Federation. An international arbitral tribunal (the Permanent Court of International Arbitration in the Hague) ruled against it and the European Court of Human Rights also ruled against it.
Issues concerning the Bali Agreements, raised again by India, also highlights the need to update rules of global commerce and opposition to it. The U.S. continues to exercise its extraterritorial jurisdiction in litigation raising questions of abuse of domestic courts, so some critics argue. China is also using its domestic courts against foreign technology companies under its antitrust laws.
Here are the particulars:
…..The WTO’s Bali Agreements may come undone because of India. This would weaken the WTO system and its dispute resolution system also. Rules need to be update for the system to be able to adjudicate newer trade disputes. “WTO plunged into crisis as doubts grow over its future.” Financial Times(August 1, 2014).
…. Robust institutions and rule of law is still the hallmark of the Western-based global trading system. But bugging International tragic and arbitrary economic sanctions weakens the legitimacy of that basis, so says this editorial. Sounds about right. “The world calls time on western rules.” Financial Times (August 1, 2014).
…. I wonder if this is Chinese antitrust action is pay back for U.S. snooping on China’s computer networks. Microsoft, Qualcomm and others are confronting this. “China Harasses U.S. Tech Companies.” New York Times (July 31, 2014).
…. Three days after word arrived that Russia’s handling of OAO Yukos Oil Company would result in the largest arbitration award in history by a factor of 20, the European Court of Human Rights on Thursday announced a judgment thought to be its largest by a factor of over 100. “ECHR Piles on Russia With $2.5 Billion Yukos Award.” American Lawyer (July 31, 2014).
…. International arbitration is an ever-growing aspect of a rules-based global commerce system today. Just look at the largest arbitration award ever. A $50 billion award was just announced by the Permanent Court of Arbitration against Yukos Oil. Combined with the New York Convention on Arbitration domestic actions will now be filed worldwide to enforce this award. Arbitration of global business disputes is often more effective than litigation in global commerce. Unlike arbitration awards court judgments still remain outside of obligatory national enforcement. “$50 Billion Arbitration Award to Yukos.” New York Times (July 28, 2014).
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