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Legal consequences of wrongful acts in international economic law*

Published online by Cambridge University Press:  07 July 2009

G. White
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Extract

It has been recognized more clearly than ever in modern times that economic relations are inextricably bound up, on the international plane, with political relations among states. To quote from three distinguished American political scientists, C.F. Bergsten, R.O. Keohane and J.S. Nye

“On the motivational level … political and economic factors are frequently so closely intertwined that they cannot be disentangled. In addition, regardless of motivations, politics and economics are almost inevitably linked at the systemic level. An international economic system is affected by the international political system existing at the time, and vice versa.”

Type
Symposium on State Responsibility and Liability for Injurious Consequences Arising out of Acts not Prohibited by International Law
Information
Netherlands Yearbook of International Law , Volume 16 , December 1985 , pp. 137 - 173
Copyright
Copyright © T.M.C. Asser Press 1985

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References

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10. VerLoren van Themaat, op.cit., n.4 pp. 240–7.

11. VerLoren van Themaat, op.cit., n.4 p. 243.

12. Ibid.

13. Ibid., at p. 247.

14. ibid.

15. See B. Simma, this volume.

16. Ibid.

17. Ibid.

18. See text at note 58 below.

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38. Ibid., s.10.212.

39. Re Anti-Subsidy Proceedings concerning Certain Kinds of Women's Shoes Originating in Brazil, 81/901/EEC, [1982] 2 CMLR p. 416.

40. EC Council Regulation 2641/84 of 17 Sept. 1984 [1984], OJ L 252/1, “On the strengthening of the common commercial policy with regard in particular to protection against illicit commercial practices.” Text also in 23 ILM (1984) p. 1419.

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42. For recent disputes between the EEC and the USA concerning anti-dumping and countervailing measures against import of special steels, involving Article XIX of GATT, see issues of the EC Bulletin 7/8–1983, 9–1983, 2–1984, 6–1984, 7/8–1984 and 9–1984. A bilateral arrangement between the parties relating to carbon steel was reached in October 1982, see ibid. 10–1982 and OJ [1982] L 307/1 et seq. Disputes have arisen regarding its application, but have been resolved by negotiation.

43. McGovern, op.cit., n.22 s.10.112.

44. Including the former EFTA Secretary-General, Sir Frank Figgures, in 14 ICLQ (1965) p. 1079 and van der Meersch, W. Ganshof, 1 Organisations Européennes (1966) p. 503Google Scholar. See generally Szokoloczy-Syllaba, A., “EFTA, The Settlement of Disputes”, 20 ICLQ (1971) p. 519CrossRefGoogle Scholar and on the imposition of the import surcharge by the UK in 1964, Lauterpacht, E., ed., British Practice in International Law [1964]-II pp. 247–255.Google Scholar

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48. Ibid., p. 209.

49. See generally on Art. XXIII, Dam, K.W., The GATT: Law and International Economic Organization (Chicago 1970) p. 357 et seqGoogle Scholar. On the ‘chicken war’ see Walker, J. in 58 AJIL (1964) p. 671CrossRefGoogle Scholar and Lowenfeld, A. in 4 J Maritime L and Comm. (1973) p. 599.Google Scholar

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51. Financial recovery was again urged by Fishlow, A. in 1978: “A New International Economic Order: What kind?”, in Rich and Poor Nations in the World Economy (New York 1978) p. 57.Google Scholar

52. See Jackson, , World Trade and the Law of GATT op.cit., n.50, pp. 169–171.Google Scholar

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55. See Articles 13 and 14.

56. VerLoren van Themaat, op.cit., n.11 p. 217.

57. Petersmann, loc.cit., n.42 p. 432.

58. Bowett, D.W., “Economic Coercion and Reprisals by States”, 16 Virg. JIL (1976) pp. 258-9Google Scholar (reproduced in Lillich, ed., loc.cit., n.19 p. 17); Audretsch, H.A.H., Supervision in European Community Law (1978) pp. 81-2Google Scholar; White, G., “The Impact of European Community Law on International Law” in Cheng, B., ed., International Law: Teaching and Practice (London 1982) pp. 78-9.Google Scholar

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61. On the Australian and Brazilian complaints see Panel Report (Australian case) in 20 ILM (1981) p. 862; McGovern, op.cit., n.22 p. 356; Smith, I. in 15 JWTL (1981) pp. 95 and 534Google Scholar; Phegan, C. in 16 JWTL (1982) p. 261.Google Scholar

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62. Everling, U., ‘The Member States of the European Community before their Court of Justice’, 9 EL Rev. (1984) p. 228Google Scholar, citing also critical views of G. Bebr, G. Vandersanden and A. Barav. For more recent developments which may lead to the Commission seeking an order from the Court that the defendant State should recover sums paid to firms by way of illegal State aids, see Flynn, J., note in 9 EL Rev. (1984) p. 365.Google Scholar

63. See Schermers, H.G., Judicial Protection in the European Communities (Antwerp 1979)CrossRefGoogle Scholar ss. 674–676 and Everling, loc.cit., supra pp. 228–9. The cases include 31/77R and 53/77R, Commission v. UK (aids for pigmeat) [1977] ECR p. 921, and 61/77R Commission v. Ireland (protective measures for fishing industry) [1977] ECR pp. 937, 1411.

64. Case 40/82 Commission v. UK [1982] ECR p. 2793.

65. See Everling, loc.cit., n.62 p. 229 and Audretsch, op.cit., n.58 pp. 74–78.

66. Paragraph 13 of the judgment. The Court held that the Commission had not made out its case, so that no order for repayment was made.

67. See also Schermers, op.cit., n.63 s.429 and Audretsch, op.cit., n.58 pp. 74–78.

68. On the British Government's contemplated claim for damages in the ‘sheepmeat’ case, 232/78 Commission v France [1979] ECR p. 2729, see Hartley, T.C., The Foundations of European Community Law (Oxford 1981) p. 315Google Scholar. See generally Schermers, op.cit., n.63 s.443.

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70. Schermers, H.G., vol. 2 International Institutional Law (1972) pp. 588–589.Google Scholar

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72. Case 7/61 [1961] ECR 326.

73. Under 4.2.1 supra. IMF Articles, Article V, Section 5 provides for a formal decision by the Fund's Executive Directors that a member is ineligible to have access to Fund resources. This power has been used on very rare occasions. See J. Gold in Weston et.al., op.cit., n.24 pp. 799–801.

74. For a useful bibliography on commodity arrangements in general, and on particular agreements see McGovern, op.cit., n.22 pp. 437–40.

75. Op.cit. n. 70.

76. Note that under the ECSC Treaty the Member States do not have the right to bring each other before the Court. Article 88 is limited to obliging the Commission to ‘record’ a State's failure to fulfil an obligation under the Treaty in a reasoned decision, which may be appealed by the State to the ECJ. The sanctions provision of Article 88, in case of failure of the Member to fulfil its obligation within the time-limit specified by the Commission, or of the dismissal of the Member's appeal to the ECJ, has not been used.

77. See text and notes to 5.1.2 supra.

78. E.g., International Wheat Trade Convention, 1971; International Sugar Agreement, 1977; International Coffee Agreement, 1976.

79. See 5.2.1 supra for a discussion of the nature of ECJ judgments.

80. Art. 219 (EEC); Art. 193 (Euratom); Art. 87 (ECSC).

81. See text and notes at 5.1.7 supra.

82. See M.C.W. Pinto's article, this volume.

83. General course, “Principles de droit international public”, 101 Hague Recueil (1960-III) p. 195.Google Scholar

84. Preliminary report, A/CN.4/334, ILC Yearbook 1980 vol. 2 at p. 265 and note 127.

85. In discussion of Quentin-Baxter's Second Report, ILC Yearbook 1981 vol. 1 p. 221, 1686th meeting, paragraph 1.

86. See supra 5.1.5, 5.1.6.

87. System of the Law of Nations: State Responsibility, Part I (Oxford 1983) p. 50.Google Scholar

88. Res. 3201 (S-VI). No vote was taken, but the Declaration does not represent a consensus as several States expressed reservations. See Johnson, D.H.N., “The New International Economic Order”, 37 YBWA (1983) pp. 217–220.Google Scholar

89. Paragraph 1.

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93. The recent arbitrations concerning termination of oil concessions by the host States offer a rich harvest of the current arguments on the basis for reparation, compensation or restitution, and the factors which should affect the nature and amount of reparation. See BP v. Libya (1974), 53 ILR p. 297; Texaco v. Libya (1977), 53 ILR p. 389, 17 ILM (1978) p. 1; Liamco v. Libya (1977), 62 ILR p. 140, 20 ILM (1978) p. 1; Arbitration between Kuwait and the American Independent Oil Company (Aminoil) (1982), 21 ILM (1982) p. 976.

Among numerous comments on one or more of these cases see Bowett, D.W. in 37 CLJ (1978) p. 5CrossRefGoogle Scholar; Kahn, P. in 109 Clunet (1977) p. 319Google Scholar; von Mehren, R.B. and Kourides, P.N. in 75 AJIL (1981) p.1CrossRefGoogle Scholar. See also Higgins, R., ‘The Taking of Property by the State: Recent Developments in International Law’, 176 Hague Recueil (1982), p. 261 at pp. 301–305, 314–321, 340Google Scholar, and Garcia-Amador, F.V., The Changing Law of International Claims, Vol. I (New York 1984) pp. 398–401.Google Scholar