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The Potential of Transnational Regulations: The Interactions Between Traditional and Non-Traditional Sources of International Economic Law

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Netherlands Yearbook of International Law 2017

Part of the book series: Netherlands Yearbook of International Law ((NYIL,volume 48))

Abstract

This chapter discusses the challenges and potentialities lying in the interactions between traditional and non-traditional sources of International Economic Law (IEL). To better present such dynamics, a focus lies on the normative dialogues between investment treaties and transnational regulations addressing economically-material topics, in particular human rights and environmental issues. Based on this, five interactions between transnational regulations and IEL treaties are identified, namely coordination and complementarity, normative conflict and concurrence, contribution to the progressive development of law, translation, and the recognition of social demands. These interactions reveal the potentialities emerging from the joint use of transnational regulations and traditional sources of IEL, contributing to bridging the gaps between issues traditionally addressed by IEL and social aspirations. Yet, in order to fulfil this potential, the active participation of several stakeholders in different processes surrounding transnational regulations has to be taken seriously. This chapter argues that in this way, transnational regulations can be seen as a facilitator of empowerment of socially vulnerable actors, fostering the embracement of their perspectives by transnational regulations, and thus also triggering normative interactions between transnational regulations and IEL.

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Notes

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  3. 3.

    Friede et al. 2015.

  4. 4.

    Cafaggi 2011, at 20–21.

  5. 5.

    Ibid.

  6. 6.

    Stewart 2012, at 41.

  7. 7.

    Halliday and Shaffer 2015.

  8. 8.

    Bartley 2007; Cafaggi 2011.

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    Zumbansen 2011.

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  19. 19.

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  21. 21.

    Cafaggi 2012.

  22. 22.

    J Ruggie, Special Representative of the Secretary-General, Protect, Respect and Remedy: A Framework for Business and Human Rights - Report of the on the issue of human rights and transnational corporations and other business enterprises, 8th Session of the HRC, UN Doc A/HRC/8/5, 7 April 2008, para 54.

  23. 23.

    Roundtable on Sustainable Palm Oil (2017) Case Tracker: IOI Group - PT Sukses Karya Sawit (SKS), PT Berkat Nabati Sawit (PT BNS), PT Bumi Sawit Sejahtera (PT BSS) Subsidiary of PT Sawit Nabati Agro (PT SNA), IOI Group, http://www.rspo.org/members/complaints/status-of-complaints/view/80, accessed 14 August 2017.

  24. 24.

    Roundtable on Sustainable Palm Oil (2016) Notice to RSPO Members on the Suspension of IOI Group’s Certification, 1 April 2016, http://www.rspo.org/news-and-events/announcements/notice-to-rspo-members-on-the-suspension-of-ioi-groups-certification, accessed 14 August 2017; K Taufik (2016) Unilever palm oil supplier must suspend all plantation expansion to save reputation, The Guardian, 9 April 2016, https://www.theguardian.com/sustainable-business/2016/apr/09/ioi-malaysian-palm-oil-company-unilever-mars-kellogg-rspo-deforestation, accessed 14 August 2017.

  25. 25.

    Rainforest Action Network (2016) NGO’s Tell Brands: Drop Palm Oil Giant IOI Group! Civil Society Recommendations to Brands and Traders Regarding the Cancellation of IOI Group as a Global Supplier of Palm Oil, https://www.ran.org/ioi_statement, accessed 14 August 2017.

  26. 26.

    P Jacobson (2016) Unilever, Kellogg, Mars drop palm oil giant IOI over RSPO suspension, Mongabay News, 5 April 2016, https://news.mongabay.com/2016/04/unilever-kellogg-mars-drop-palm-oil-giant-ioi-rspo-suspension/, accessed 14 August 2016; Unilever (2016) Unilever responds to the RSPO decision to lift suspension of the IOI Group, 15 August 2016, https://www.unilever.com/news/press-releases/2016/Unilever-reacts-to-palm-oil-suppliers-suspension-from-RSPO.html, accessed 14 August 2017; J Murray (2016) Multinationals drop palm oil supplier as sustainability certifications start to bite, Business Green, 6 April 2016, https://www.businessgreen.com/bg/analysis/2453623/multinationals-drop-palm-oil-supplier-as-sustainability-certifications-start-to-bite, accessed 14 August 2017.

  27. 27.

    Roundtable on Sustainable Palm Oil (2016) Update on the status of IOI Group’s certification, 5 August 2016, https://www.rspo.org/news-and-events/announcements/update-on-the-status-of-ioi-groups-certification, accessed 14 August 2017.

  28. 28.

    Bartley 2007.

  29. 29.

    Halliday and Shaffer 2015.

  30. 30.

    Fairtrade Labelling Organizations International (2016) Fairtrade Trader Standard. It is important to highlight that literature addressing transnational regulations (e.g. Bartley 2007; Scott et al. 2011) differentiates between standards and transnational regulations.

  31. 31.

    Fairtrade Labelling Organizations International (2015) Explanatory Document for the Fairtrade Trader Standard, August 2015, https://www.fairtrade.net/fileadmin/user_upload/content/2009/standards/documents/generic-standards/2015-09-04_Explan_Doc_GTS_EN.pdf, accessed 3 February 2017.

  32. 32.

    Fairtrade Labelling Organizations International (2016) Fairtrade Trader Standard, Requirement 1.1.3.

  33. 33.

    Schrijver 2008, at 29.

  34. 34.

    Bianchi 2016, at 16 ff. On the elements characterising what represents a perspective, see also Nietzsche 1967, at 267.

  35. 35.

    Kuning et al. 1989, at I7. See also Qureshi and Ziegler 2011, at 8–14; Schwarzenberger 1967, at 7; Schwarzenberger 1962, at 213 ff; Van Themaat 1981, at 9–11.

  36. 36.

    Schwarzenberger 1962, at 213; Qureshi and Ziegler 2011, at 10.

  37. 37.

    See, for example, 1969 Vienna Convention on the Law of Treaties, 1155 UNTS 331 (‘VCLT’).

  38. 38.

    Besson 2010, at 170.

  39. 39.

    See, for example, Schwarzenberger 1967, at 15–17; Qureshi and Ziegler 2011, at 8–14.

  40. 40.

    See, for example, Koh 2013.

  41. 41.

    Weber 1999; Durkheim 1987; Santos 1995, at 374.

  42. 42.

    Petersmann 2012, at 78–81.

  43. 43.

    Hart 1961, at 83–85.

  44. 44.

    Zumbansen 2012, at 20–21.

  45. 45.

    Jayme 1995, at 257–259.

  46. 46.

    Santos 2014, 164–187.

  47. 47.

    Gordon et al. 2014.

  48. 48.

    For example, see 2010 Agreement for the Promotion and Protection of Investment between the Republic of Austria and the Republic of Tajikistan, BGBl. III Nr. 18/2012 (‘BIT Austria-Tajikistan’); 2011 Accord entre la Confédération Suisse et la République du Kosovo concernant la promotion et la protection réciproque des investissements, RS 0.975.247.5 (‘BIT Switzerland-Kosovo’).

  49. 49.

    For example, see 2008 Free Trade Agreement between Canada and the Republic of Peru, Canada Treaty Series 2009/15 (‘FTA Canada-Peru’), Article 810; 2015 Investment Cooperation and Facilitation Agreements between Brazil and Chile, MSC 57/2016 (‘ICFA Brazil-Chile’), Article 15.

  50. 50.

    2015 Investment Cooperation and Facilitation Agreement between Brazil and Malawi, MSC 26/2016 (‘ICFA Brazil-Malawi’), Article 9.

  51. 51.

    Webber Ziero 2016.

  52. 52.

    For an in-depth discussion on transnational regulations addressing concepts of corporate social responsibility and responsible business conduct, see ibid., at 86–90.

  53. 53.

    Cafaggi 2011, at 40–42; Zumbansen 2011, at 58.

  54. 54.

    ICFA Brazil-Malawi, Article 9(2).

  55. 55.

    Zumbansen 2011, at 58.

  56. 56.

    European Parliament, European Parliament legislative resolution of 16 March 2017 on the proposal for a regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas (COM(2014)0111 – C7-0092/2014 – 2014/0059(COD)) (Ordinary legislative procedure: first reading), P8_TA(2017)0090, 16 March 2017. See also European Parliament (2016) Conflict minerals: MEPs secure mandatory due diligence for importers, 22 November 2016, http://www.europarl.europa.eu/news/en/news-room/20161122IPR52536/conflict-minerals-meps-secure-mandatory-due-diligence-for-importers, accessed 3 February 2017.

  57. 57.

    European Commission, Staff Working Document – Executive Summary of the Impact Assessment accompanying the document: Proposal for a Regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict- affected and high-risk areas, SWD(2014) 52 final, 5 March 2014. European Parliament Commission on Development, Opinion of the Committee on Development for the Committee on International Trade on the on the proposal for a regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas, 2014/0059(COD), 23 May 2015.

  58. 58.

    Abbot and Snidal 2000, at 435.

  59. 59.

    J Ruggie, Report of the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises, John Ruggie: Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’ Framework, 17th Session of the HRC, UN Doc A/HRC/17/31, 21 March 2011, Guiding Principle 17.

  60. 60.

    Tourme-Jouannet 2011, at 146–174; Santos 2014, at 177–178.

  61. 61.

    For documents prior to the 1970s adopting an indirect approach, see, for example, 1945 Charter of the United Nations, 1 UNTS XVI, Preamble; 1945 International Bank for Reconstruction and Development Articles of Agreement, 2 UNTS 134, Article 1(v); 1945 International Monetary Fund Articles of Agreement, 2 UNTS 39, Article 1(ii). For documents from the 1970s with a more outstanding approach towards the connection between economic and social issues, see United Nations Conference on the Human Environment, Declaration of the United Nations Conference on the Human Environment (Stockholm Declaration), UN Doc A/CONF.48/14/Rev.1, 5–16 June 1972; United Nations General Assembly, Declaration on the Establishment of a New International Economic Order, UN Doc A/RES/S-6/3201, 1 May 1974. For more recent documents, see, for example, 1994 Marrakesh Agreement Establishing the World Trade Organization, 1867 UNTS 154, Preamble.

  62. 62.

    See, for example, Sempra Energy International v The Argentine Republic, ICSID, Case No. ARB/02/16, 28 September 2007, paras 331–332; Urbaser S.A. and Consorcio de Aguas Bilbao Bizkaia, Bilbao Biskaia Ur Partzuergoa v The Argentine Republic, ICSID, Case No. ARB/07/26, 8 December 2016, paras 1193–1221. Moreover, see Petersmann 2009, at 184–186.

  63. 63.

    Bartley 2007; Scott et al. 2011.

  64. 64.

    Scherer et al. 2006, at 519–521.

  65. 65.

    Cafaggi 2011, at 30.

  66. 66.

    GoodWeave International (2016) GoodWeave Generic International Standard for Rug Producers – version 3.0, 1 January 2016, http://www.goodweave.org/uploads/GoodWeave-Generic-Intl-Standard-v3-0.pdf, accessed 11 August 2017.

  67. 67.

    GoodWeave International (2014) Stakeholder Comments from the Public Consultation May-August 2014, 12 November 2014, https://goodweave.org/wp-content/uploads/2017/02/GWI_Stakeholder_Comments_May-Aug_2014.pdf, accessed 11 August 2017.

  68. 68.

    Habermas 1996, at 118 ff.

  69. 69.

    GoodWeave International (2016) Terms of Reference GoodWeave Standards Committee – version 6.0, October 2016, http://comments.goodweave.org/wp-content/uploads//GWI-Standards-Committee-TOR-v_6-Oct-2016.pdf, accessed 11 August 2017; GoodWeave International (2016) Terms of Reference Oversight Committee – version 2.0, March 2016, http://comments.goodweave.org/wp-content/uploads//Oversight-CommitteeTOR-v.2.0.pdf, accessed 11 August 2017; GoodWeave International (2014) Terms of Reference GoodWeave Certification Committee – version 1.1, January 2014, http://comments.goodweave.org/wp-content/uploads//GWI-Certification-Committee-TOR-v.1.1.pdf, accessed 11 August 2017.

  70. 70.

    United Nations Conference on Environment and Development, The Rio Declaration on Environment and Development, UN Doc A/CONF.151/26, 13 June 1992, Principle 10. See also Sen 1999.

  71. 71.

    Sen 1999; Habermas 1996.

  72. 72.

    Santos 2002, at 329 ff.

  73. 73.

    Ostrom 1990.

  74. 74.

    Alexander 2016.

  75. 75.

    Franck 1988.

  76. 76.

    Perkins and Zimmerman 1995, at 569.

  77. 77.

    Freire 1979.

  78. 78.

    ICFA Brazil-Malawi, Article 9.

  79. 79.

    Ibid.

  80. 80.

    See, for example, Barclays (2015) Environmental and Social Risk Briefing – Forestry & Logging, March 2015, https://www.home.barclays/content/dam/barclayspublic/docs/Citizenship/Foresty%20Logging%20November%202015.pdf, accessed 11 August 2017.

  81. 81.

    Forest Stewardship Council, FSC Principles and Criteria for Forest Stewardship, FSC-STD-01-001 V5-2 EN, 22 July 2015.

  82. 82.

    ICFA Brazil-Malawi, Article 9.

  83. 83.

    Forest Stewardship Council (2017) Permanent Indigenous Peoples Committee: Identifying and upholding Indigenous Peoples’ rights in forestry, https://ic.fsc.org/en/what-is-fsc/what-we-do/empowerment-of-people/pipc, accessed 11 August 2017.

  84. 84.

    Freire 1979.

  85. 85.

    Santos 2015, at 131.

  86. 86.

    Warat 1995, at 94.

  87. 87.

    Castells 2008, at 85.

  88. 88.

    Bobbio 2004, at 23 and 69.

  89. 89.

    Santos 2002, at 334.

  90. 90.

    Vellas 1965, at 26. Translated from the original (‘necessité sociale et sur la conscience collective de besoins’) by the author.

  91. 91.

    Trindade 2013.

  92. 92.

    Sen 1999.

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Webber Ziero, G. (2018). The Potential of Transnational Regulations: The Interactions Between Traditional and Non-Traditional Sources of International Economic Law. In: Amtenbrink, F., Prévost, D., Wessel, R. (eds) Netherlands Yearbook of International Law 2017. Netherlands Yearbook of International Law, vol 48. T.M.C. Asser Press, The Hague. https://doi.org/10.1007/978-94-6265-243-9_7

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