International Economic Law

The course aims to help students develop the understanding of the key current legal issues of international economic relations. It will include the study of the law of the World Trade Organization, with the focus upon such issues as antidumping, customs valuation, sanitary and phytosanitary measures, trade barriers for industrial and agricultural products, trade facilitation, standards of protection of intellectual property rights, international trade in banking and insurance services, etc. It will also include the analysis of the key issues in the arbitration of investment disputes at the International Center for Settlement of Investment Disputes (ICSID), such as the jurisdiction of ICSID, applicable law, fair and equitable treatment, full protection and security, umbrella clause, national treatment and MFN treatment.

The course will include, inter alia, the following topics:

- GATT and other multilateral agreements on trade in goods: challenges of interpretation

- the framework of regulation of international trade in services: modes of supply and schedules of specific commitments

- TRIPS: protection of intellectual property and other government policy objectives

- preferential arrangements in international trade

- general principles of law in international investment law

- bilateral investment agreements, regional free trade agreements with investment provisions, bilateral free trade agreements with investment provisions

- international custom in international investment law

- jurisdiction of ICSID (ratione materiae, ratione personae), consent to ICSID arbitration

- applicable law in disputes in ICSID

- annulment of awards of ICSID tribunals, recognition and enforcement of awards of ICSID tribunals

- legal standards of treatment of international investments and international investors

Topic 1. WTO law in the context of economic globalization. Historical development of the rules of the WTO law. The structure of the World Trade Organization. Principles of the WTO law

Lecture - 2 hours. Seminar - 2 hours. Maximum score for the seminar class – 8 points.

International trade in the context of globalization. The role of international economic law in determining the rules of international trade. WTO law as part of the public international law. Havana Charter. Kennedy round. Tokyo round. Uruguay round. The main functions of the World Trade Organization.

The WTO bodies. The WTO decision-making process. WTO membership. Procedure for the WTO accession.

The principle of most-favored-nation treatment. The principle of national treatment. The principle of transparency. Elimination of quantitative restrictions.

Topic 2. Key provisions of the WTO law on the international trade in goods

Lecture - 2 hours. Seminar - 2 hours. Maximum score for the seminar class – 8 points.

Market access for goods. Import duty as a trade barrier. Tariff binding: procedure and legal consequences. Tariff quotas. Customs fees and other mandatory payments. State trading enterprises. General exceptions. Nullification or impairment of benefits. Free trade areas and customs unions. Enabling clause.

The problem of customs valuation in the context of tariff concessions. Brussels definition of value. Development of rules on customs valuation in the GATT. The price paid or payable. The transaction value. Methods of customs valuation.

Topic 3. Technical barriers to trade. Sanitary and phytosanitary measures. WTO Agreement on Trade Facilitation

Lecture - 2 hours. Seminar - 2 hours. Maximum score for the seminar class – 8 points.

WTO Agreement on Technical Barriers to Trade. WTO Agreement on the Application of Sanitary and Phytosanitary Measures. WTO rules on non-discrimination in the field of technical, sanitary and phytosanitary regulation. WTO rules on the development and implementation of technical regulations, standards, sanitary and phytosanitary measures. WTO rules on conformity assessment procedures. The difference between technical regulations and standards.

WTO rules on the transparency of regulatory measures. WTO rules on mandatory payments at the border. Advance rulings. Post clearance audit. Risk management and risk assessment. Authorized operator. WTO rules on transit.

Topic 4. Other WTO agreements on trade in goods. WTO law and other rules of international law.

Lecture - 2 hours. Seminar - 2 hours. Maximum score for the seminar class – 9 points.

WTO Agreement on Rules of Origin. WTO Agreement on Import Licensing Procedures. TRIMS agreement. Revised WTO Agreement on Government Procurement.

The concept of dumping. Anti-dumping investigation. Anti-subsidy investigation. Injury. Causal link between dumping and injury. Safeguard investigation. Special rules of dispute settlement in the WTO on anti-dumping, countervailing and safeguard measures. The concept of subsidy in the WTO law. Forms of subsidies. Classification of subsidies.

WTO law in domestic law. The regional integration of markets. Human rights and international economic relations.

Topic 5. Regulation of the trade in services and the WTO law. WTO Agreement on Trade-Related Intellectual Property Rights (TRIPS Agreement). Dispute settlement in the WTO

Lecture - 2 hours. Seminar - 2 hours. Maximum score for the seminar class – 9 points.

Most-favored-nation treatment in the trade in services. Market access in the trade in services. National treatment in the trade in services. GATS rules with regard to the qualification requirements for service providers. GATS rules on monopolies and exclusive service providers. GATS rules on domestic regulation.

The structure of the TRIPS Agreement. Copyright and the TRIPS requirements. The concept of related rights and the relevant requirements of TRIPS. TRIPS requirements on trademarks and industrial designs. Patentability of inventions. Layout designs of integrated circuits. TRIPS and enforcement of intellectual property rights. Civil remedies. Provisional measures. Border measures. Criminal remedies.

The stages of the dispute settlement process in the WTO. The implementation of recommendations and rulings of the Dispute Settlement Body.

Topic 6. Definition and sources of international investment law. Settlement of international investment disputes in ICSID

Lectures - 2 hours. Seminars - 2 hours. Maximum score for the seminar class – 9 points.

Definition and historical development of the international investment law. Historical significance of friendship, commerce and navigation treaties. Calvo Doctrine. Hull Doctrine. The establishment of the ICSID.

Classification of sources of international investment law. International customary law. Bilateral investment agreements. Regional free trade agreements with investment provisions. Bilateral free trade agreements with investment provisions. General principles of law in international investment law.

ICSID bodies. Panels of Arbitrators. Conciliation and arbitration. Jurisdiction of ICSID (ratione materiae, ratione personae). Consent to ICSID arbitration.

Topic 7. Practice of interpretation of sources of international investment law. Legal standards of treatment of international investment. Stimulation of international investment. Non-commercial risks. International Monetary Law.

Lecture - 2 hours. Seminar - 2 hours. Maximum score for the seminar class – 9 points.

Applicable law in disputes in ICSID. Annulment of awards of ICSID tribunals. Recognition and enforcement of awards of ICSID tribunals. ICSID additional facility.

Fair and equitable treatment. Full protection and security. Most-favored-nation treatment. National treatment. Umbrella clause.

International Monetary Fund. The World bank and other financial institutions. International regulation of the banking sector.

The concept of non-commercial risks. Classification of non-commercial risks. Functions of the MIGA. Stimulation of foreign investment activity.

Literature for the course in general:

• Peter Van den Bossche and Werner Zdouc. The Law and Policy of the World Trade Organization. Fourth edition. (2017). Cambridge University Press.

• Matthias Herdegen. Principles of international economic law (2013). Oxford: Oxford University Press.

• Research handbook in international economic law. Ed. by Andrew T. Guzman and Alan O. Sykes (2007). Cheltenham; Northampton: Edward Elgar Publishing

• Rudolf Dolzer and Christoph Schreuer. Principles of international investment law. 2nd edition. (2012) Oxford: Oxford University Press.

• Christoph H. Schreuer [et al.]. The ICSID convention: a commentary (2001). Cambridge: Cambridge University Press.

• International economic negotiations: models versus reality. Ed. by Victor Kremenyuk and Gunnar Sjöstedt (2000). Cheltenham; Northampton, MA. Edward Elgar Publishing.

Topic 1. WTO law in the context of economic globalization. Historical development of the rules of the WTO law. The structure of the World Trade Organization. Principles of the WTO law .

• Peter Van den Bossche and Werner Zdouc. The Law and Policy of the World Trade Organization. Fourth edition. (2017). Cambridge University Press. Chapters 1 and 2. p. 1-163

Cases:

• United States — Standards for Reformulated and Conventional Gasoline (Report of the Appellate Body adopted on 20 May 1996)

• China — Measures Related to the Exportation of Rare Earths, Tungsten and Molybdenum (Report of the Appellate Body adopted on 29 August 2014)

• Spain - Tariff Treatment of Unroasted Coffee (Report of the Panel adopted on 11 June 1981)

• Argentina - Measures Affecting Imports of Footwear, Textiles, Apparel and other Items (Report of the Appellate Body adopted on 22 April 1998)

• Japan - Customs Duties, Taxes and Labelling Practices on Imported Wines and Alcoholic Beverages (Report of the Panel adopted on 10 November 1987)

• Japan - Taxes on Alcoholic Beverages (Report of the Appellate Body adopted on 1 November 1996)

Topic 2. Key provisions of the WTO law on the international trade in goods

• Peter Van den Bossche and Werner Zdouc. The Law and Policy of the World Trade Organization. Fourth edition. (2017). Cambridge University Press. Chapters 4, 5, 7 and 8. p. 305-414, 478-629 (Most-Favored-Nation Treatment, National Treatment, Non-Tariff Barriers, General and Security Exceptions) (except for p. 325-339 (Most-Favored-Nation Treatment under the GATS), p. 399-411 (National Treatment under the GATS), p. 517-540 (Market Access Barriers to Trade in Services, Other Barriers to Trade in Services), p. 605-618 (General Exceptions under the GATS), p. 623 (Article XIV bis of the GATS).

Cases:

• Thailand - Customs and Fiscal Measures on Cigarettes from the Philippines (Report of the Appellate Body adopted on 15 July 2011)

• Turkey — Restrictions on Imports of Textile and Clothing Products (Report of the Appellate Body adopted on 19 November 1999)

Topic 3. Technical barriers to trade. Sanitary and phytosanitary measures. WTO Agreement on Trade Facilitation

• Peter Van den Bossche and Werner Zdouc. The Law and Policy of the World Trade Organization. Fourth edition. (2017). Cambridge University Press. Chapters 13, 14. p. 883-992

• https://www.tfafacility.org

Cases:

• European Communities — Measures Concerning Meat and Meat Products (Hormones) (Report of the Appellate Body adopted on 13 February 1998)

• European Communities — Measures Affecting Asbestos and Products Containing Asbestos (Report of the Appellate Body adopted on 5 April 2001)

• United States — Measures Concerning the Importation, Marketing and Sale of Tuna and Tuna Products (Report of the Appellate Body adopted on 13 June 2012)

• United States — Import Prohibition of Certain Shrimp and Shrimp Products (Report of the Appellate Body adopted on 6 November 1998)

Topic 4. Other WTO agreements on trade in goods. WTO law and other rules of international law.

• Peter Van den Bossche and Werner Zdouc. The Law and Policy of the World Trade Organization. Fourth edition. (2017). Cambridge University Press. Chapters 9, 11 and 12. p. 630-670, 696-882

• Matthias Herdegen. Principles of international economic law (2013). Oxford: Oxford University Press. p.101-118, 269-299

The cases include, but are not limited to:

• Indonesia — Certain Measures Affecting the Automobile Industry (Panel Report Adopted on adopted on 23 July 1998)

• United States — Measures Affecting Trade in Large Civil Aircraft — Second Complaint (Appellate Body Report Adopted on 23 March 2012)

• United States - Definitive Anti-Dumping and Countervailing Duties on Certain Products from China (Report of the Appellate Body adopted on 25 March 2011)

• United States - Anti-Dumping and Countervailing Measures on Large Residential Washers from Korea (Report of the Appellate Body adopted on 26 September 2016)

• Indonesia - Safeguard on Certain Iron or Steel Products (Report of the Appellate Body adopted on 27 August 2018)

Topic 5. Regulation of the trade in services and the WTO law. WTO Agreement on Trade-Related Intellectual Property Rights (TRIPS Agreement). Dispute settlement in the WTO

• Peter Van den Bossche and Werner Zdouc. The Law and Policy of the World Trade Organization. Fourth edition. (2017). Cambridge University Press. Chapters 4, 5, 7 and 8. p. 325-339, 399-411, 517-540, 605-618, 623, Chapter 15, p.993-1057

Cases:

• United States — Measures Affecting the Cross-Border Supply of Gambling and Betting Services (Report of the Appellate Body adopted on 20 April 2005)

• Mexico — Measures Affecting Telecommunications Services (Panel Report adopted on 1 June 2004)

• Canada - Term of Patent Protection (Report of the Appellate Body adopted on 12 October 2000)

• United States — Sections 301–310 of the Trade Act 1974 (Panel Report adopted on 27 January 2000)

Topic 6. Definition and sources of international investment law. Settlement of international investment disputes in ICSID

• Rudolf Dolzer and Christoph Schreuer. Principles of international investment law. 2nd edition. (2012) Oxford: Oxford University Press. Chapter 1. p. 1-27. Chapters 2 and 3, p. 28-78.

• Christoph H. Schreuer [et al.]. The ICSID convention: a commentary (2001). Cambridge: Cambridge University Press.

• James R. Crawford (2012), Brownlie’s principles of public international law. Oxford University Press, 8th edition. Part X, p. 607-633

Cases:

• Dissenting Opinion of Samuel K.B. Asante in Asian Agricultural Products Ltd. v. Republic of Sri Lanka, ICSID Case No. ARB/87/3.

• Decision on Jurisdiction in Salini Costruttori S.p.A. and Italstrade S.p.A. v. Kingdom of Morocco, ICSID Case No. ARB/00/4

• Decision on Jurisdiction in Philip Morris Brands Sàrl, Philip Morris Products S.A. and Abal Hermanos S.A. v. Oriental Republic of Uruguay, ICSID Case No. ARB/10/7

• Decision on Jurisdiction in Quiborax S.A., Non Metallic Minerals S.A. and Allan Fosk Kaplún v. Plurinational State of Bolivia, ICSID Case No. ARB/06/2

• Award of the Tribunal on Objections to Jurisdiction in Fedax N.V. v. The Republic of Venezuela, ICSID Case No. ARB/96/3

Topic 7. Practice of interpretation of sources of international investment law. Legal standards of treatment of international investment. Stimulation of international investment. Non-commercial risks. International Monetary Law.

• Rudolf Dolzer and Christoph Schreuer. Principles of international investment law. 2nd edition. (2012) Oxford: Oxford University Press. Chapters 7, 8, 9 and 10, p. 130-312

• Christoph H. Schreuer [et al.]. The ICSID convention: a commentary (2001). Cambridge: Cambridge University Press.

• Matthias Herdegen. Principles of international economic law (2013). Oxford: Oxford University Press. p. 427-483

• What is the International Monetary Fund? Ed. by Jeremy Clift (2004). Washington, D.C.: International Monetary Fund.

Cases:

• Decision of the ad hoc Committee in Klockner v. Republic of Cameroon Case, ICSID Case No. ARB/81/2, unofficial English translation.

• Decision of the ad hoc Committee in Amco Asia Corporation and others v. Republic of Indonesia, ICSID Case No. ARB/81/1

• Decision of the ad hoc Committee in Wena Hotels Ltd. v. Arab Republic of Egypt, ICSID Case No. ARB/98/4

• Award and Decision on the Application for Annulment in Enron Corporation and Ponderosa Assets, L.P. v. Argentine Republic, ICSID Case No. ARB/01/3

• Award and Decision on the Application for Annulment in CMS Gas Transmission Company v. The Republic of Argentina, ICSID Case No. ARB/01/8

• Award in Emilio Agustin Maffezini v. The Kingdom of Spain, ICSID Case No. ARB/97/7

• Award in Pantechniki S.A. Contractors & Engineers (Greece) v. The Republic of Albania, ICSID Case No. ARB/07/21

• Award and Challenge to Arbitral Award in Metalclad Corporation v. The United Mexican States, ICSID Case No. ARB(AF)/97/1

• Indonesia - Certain Measures Affecting the Automobile Industry (Panel Report adopted on 23 July 1998)

The course is to help students analyze the role of governments in international trade, investment and finance, as well as the various aspects of regulation in these spheres. The focused topics will provide students with advanced understanding of the mechanisms of regulation in such different spheres of international economic relations as intellectual property, sanitary measures, international investment, etc. As a result, the students will be able to solve various practical problems of international relations, using the framework of concepts of international economic law.

Criteria of assessment

Oral presentations at the seminars - maximum total score is 60 points

Written final test - maximum score is 40 points

In seminars students are expected to be able to make a brief oral statement on any issue included in the topic of the seminar.

The final number of points on the 100 points scale is converted into the protocol scale as follows:

100 points scale Protocol scale

96-100 5!

90-95 5

82-89 4,5

75-81 4

68-74 3,5

60-67 3

0-59 2