International economic law
I. Introduction
This course is relevant for business. It’s at the hard of international politics. Think about the Trump
administration raising tariffs… This is what this course is about.
1. Practical information
Classes
• Thursday 1 p.m. – 3.45 p.m.
• Aud. F
• Presence not mandatory, but NO recordings available
• Lectures, +/- 3 guest lectures, (discussions)
Course materials
• Ppt on Ufora
• Reader on Ufora
• Extras on Ufora
o GATT tekst
Þ You have to bring this to your exam! (ex.)
o Case summaries
o Background materials
Exam
• 100 % written exam
o Theory, cases & essay type question
Þ The essay question questions your personal opinion on something we’ve
seen in class (ex.)
• What to study?
o What has been said during classes
o Alternatively: ppt + reader
Questions
• Class
•
• Practical issues: (secretary)
• Office: Universiteitstraat 4, main building, 2nd floor
2. Course overview
International economic law
• Uneasy to define
1
, o It has different ‘names/titles’:
Þ In USA: international trade law
Þ World trade law
Þ International trade regulation
• Law
o Laws that relate to economic activities
• Economic activity
o Esp. trade (goods/services), but also investment, financing, …
Þ That’s why we call it ‘economic law’ and not ‘trade law’, we want to indicate
that it’s about the entire economy and not just about trade
Þ Investments go hand in hand with trade. Trade is the exchange of goods and
services for money. Investments is actually setting up a business, investing
money to set up a business.
• International/global dimension (x2)
o The international character of international economic law comes in 2 different
dimensions:
Þ It’s law about economic activity in an international way. It’s about cross-
border economic activity. It has nothing to do with trade or investments
inside Belgium.
§ From a legal perspective you know that these cross-border activities
are more complex because you have different legal systems that
interfere with each other.
Þ It’s international law. That means that the main sources are international
public law. That’s why this course is often being taught by professors in the
international public law department.
§ In Ghent we look at international law with a ‘business law
perspective’
• Central = agreements between countries (treaties)
o Main sources of the international economic law are treaties. If you think about
business law you think of national law or private international law, but here we go to
the next dimension: international public law.
Link with other courses?
• Economic law
o Is national
• International Business Transactions
o This is about cross-border business from a private law perspective.
• International Commercial Arbitration
o This is again about private law
• Public international law
o This is to some extent the basis of international economic law
• EU Trade Policy
o EU trade Policy is zooming in on the European position in the whole story of
international economic law
Agreements on international economic activity:
• GATT
o General Agreement on Tariffs and Trade
o “The rules”
o 1947
• WTO
2
, o World Trade Organisation (164 countries are WTO member btw)
o The organisation that governs the rules of the GATT
o The organisation is in crisis…
Þ Most important founding father of the organisation is now doubting the
relevance of the organisation, so the organisation is in crisis
o Dispute settlement!
Þ Wonderful feature of international law
Þ One of the most effective dispute solving mechanisms in the entire world,
leading to high quality jurisprudence BUT the dispute settlement system is
also in crisis. It’s in a situation of dead lock…
• Bilateral – multilateral – plurilateral agreements
o Bilateral agreements
Þ Country A concludes an agreement with country B
Þ Typical for the area of investments
§ ‘We will open up our markets for investments from one country to
another.’
o Multilateral treaties
Þ Not just 2 countries or a handful, but a very big number of countries
Þ E.g. GATT
Þ Between multiple countries creating a network of identical legal
relationships
Þ Powerful legal instrument because you create rules that are applicable in
many countries at the same time
o Plurilateral treaty
Þ Everything in between a bilateral treaty and a multilateral treaty
Þ Treaty with a handful participants (3 – 7)
o International economic law also consists of thousands of treaties
Þ ‘The spaghetti bowl of international economic law’
§ Every spaghetti strand is a different agreement and they are all
mixed up in a bowl
o E.g. EU https://ec.europa.eu/trade/policy/countries-and-regions/negotiations-and-
agreements/
These are all the treaties
which the EU is negotiating
Currently the number of
treaties is increasing because
of the crisis at the multilateral
level. There was a nice
multilateral organisation with
the WTO, but as this level is in
crisis, the member states start
to re-negotiate by themselves
3
, Þ It’s a chicken and egg story. Some say that it’s because the WTO is in crisis
that countries have to conclude bilateral agreements by themselves. Other
people say that it’s because there are so many bilateral agreements that the
multilateral level is overlooked and that there is a crisis.
§ Prof says it’s not really chicken and egg but 2 factors that influence
each other in a negative way
Bilateral – multilateral – plurilateral agreements
• Trade agreements
o = Treaties on trade
o GATT
o PTA’s
Þ Preferential Trade Agreements
Þ Bilateral or plurilateral agreement in which countries agree to give each
other a better treatment when it comes to trade
Þ E.g. treaty establishing the EU
Þ E.g. USMCA (US, Mexico, Canada Agreement)
§ Small group of counties that give each other advantages when it
comes to trade
• International investment agreements
o Those agreements are not only just there in the area of trade, but also in the
international investment area
o BIT’s or mixed agreements
Þ BTI = Bilateral investment Treaties
§ Bilateral treaty between e.g. the Belgian king and the Nigerian
president
§ In the spaghetti bowl these are mostly the largest number of treaties
Þ Mixed agreements
§ EU likes these
§ Combo of trade and investment
• The international monetary system
o Sources of international finance (international monetary law) are a smaller part in
the spaghetti bowl
o IMF = International Monetary Fed
Þ Core organisation in the area of international finance
A first introduction to the WTO …
• “30 years of the Marrakesh Agreement”
o https://youtu.be/pOL0X90FgF4
3. Current hot topics in IEL
WTO (DSB) crisis and beyond
• Starting since Doha 2001
o The crisis has been going on for a few years
• US - China trade conflict (and related EU position)
o The conflict between US and China has been going on a long time too. It actually
already started under the Obama administration.
• Recent US trade policy
4
I. Introduction
This course is relevant for business. It’s at the hard of international politics. Think about the Trump
administration raising tariffs… This is what this course is about.
1. Practical information
Classes
• Thursday 1 p.m. – 3.45 p.m.
• Aud. F
• Presence not mandatory, but NO recordings available
• Lectures, +/- 3 guest lectures, (discussions)
Course materials
• Ppt on Ufora
• Reader on Ufora
• Extras on Ufora
o GATT tekst
Þ You have to bring this to your exam! (ex.)
o Case summaries
o Background materials
Exam
• 100 % written exam
o Theory, cases & essay type question
Þ The essay question questions your personal opinion on something we’ve
seen in class (ex.)
• What to study?
o What has been said during classes
o Alternatively: ppt + reader
Questions
• Class
•
• Practical issues: (secretary)
• Office: Universiteitstraat 4, main building, 2nd floor
2. Course overview
International economic law
• Uneasy to define
1
, o It has different ‘names/titles’:
Þ In USA: international trade law
Þ World trade law
Þ International trade regulation
• Law
o Laws that relate to economic activities
• Economic activity
o Esp. trade (goods/services), but also investment, financing, …
Þ That’s why we call it ‘economic law’ and not ‘trade law’, we want to indicate
that it’s about the entire economy and not just about trade
Þ Investments go hand in hand with trade. Trade is the exchange of goods and
services for money. Investments is actually setting up a business, investing
money to set up a business.
• International/global dimension (x2)
o The international character of international economic law comes in 2 different
dimensions:
Þ It’s law about economic activity in an international way. It’s about cross-
border economic activity. It has nothing to do with trade or investments
inside Belgium.
§ From a legal perspective you know that these cross-border activities
are more complex because you have different legal systems that
interfere with each other.
Þ It’s international law. That means that the main sources are international
public law. That’s why this course is often being taught by professors in the
international public law department.
§ In Ghent we look at international law with a ‘business law
perspective’
• Central = agreements between countries (treaties)
o Main sources of the international economic law are treaties. If you think about
business law you think of national law or private international law, but here we go to
the next dimension: international public law.
Link with other courses?
• Economic law
o Is national
• International Business Transactions
o This is about cross-border business from a private law perspective.
• International Commercial Arbitration
o This is again about private law
• Public international law
o This is to some extent the basis of international economic law
• EU Trade Policy
o EU trade Policy is zooming in on the European position in the whole story of
international economic law
Agreements on international economic activity:
• GATT
o General Agreement on Tariffs and Trade
o “The rules”
o 1947
• WTO
2
, o World Trade Organisation (164 countries are WTO member btw)
o The organisation that governs the rules of the GATT
o The organisation is in crisis…
Þ Most important founding father of the organisation is now doubting the
relevance of the organisation, so the organisation is in crisis
o Dispute settlement!
Þ Wonderful feature of international law
Þ One of the most effective dispute solving mechanisms in the entire world,
leading to high quality jurisprudence BUT the dispute settlement system is
also in crisis. It’s in a situation of dead lock…
• Bilateral – multilateral – plurilateral agreements
o Bilateral agreements
Þ Country A concludes an agreement with country B
Þ Typical for the area of investments
§ ‘We will open up our markets for investments from one country to
another.’
o Multilateral treaties
Þ Not just 2 countries or a handful, but a very big number of countries
Þ E.g. GATT
Þ Between multiple countries creating a network of identical legal
relationships
Þ Powerful legal instrument because you create rules that are applicable in
many countries at the same time
o Plurilateral treaty
Þ Everything in between a bilateral treaty and a multilateral treaty
Þ Treaty with a handful participants (3 – 7)
o International economic law also consists of thousands of treaties
Þ ‘The spaghetti bowl of international economic law’
§ Every spaghetti strand is a different agreement and they are all
mixed up in a bowl
o E.g. EU https://ec.europa.eu/trade/policy/countries-and-regions/negotiations-and-
agreements/
These are all the treaties
which the EU is negotiating
Currently the number of
treaties is increasing because
of the crisis at the multilateral
level. There was a nice
multilateral organisation with
the WTO, but as this level is in
crisis, the member states start
to re-negotiate by themselves
3
, Þ It’s a chicken and egg story. Some say that it’s because the WTO is in crisis
that countries have to conclude bilateral agreements by themselves. Other
people say that it’s because there are so many bilateral agreements that the
multilateral level is overlooked and that there is a crisis.
§ Prof says it’s not really chicken and egg but 2 factors that influence
each other in a negative way
Bilateral – multilateral – plurilateral agreements
• Trade agreements
o = Treaties on trade
o GATT
o PTA’s
Þ Preferential Trade Agreements
Þ Bilateral or plurilateral agreement in which countries agree to give each
other a better treatment when it comes to trade
Þ E.g. treaty establishing the EU
Þ E.g. USMCA (US, Mexico, Canada Agreement)
§ Small group of counties that give each other advantages when it
comes to trade
• International investment agreements
o Those agreements are not only just there in the area of trade, but also in the
international investment area
o BIT’s or mixed agreements
Þ BTI = Bilateral investment Treaties
§ Bilateral treaty between e.g. the Belgian king and the Nigerian
president
§ In the spaghetti bowl these are mostly the largest number of treaties
Þ Mixed agreements
§ EU likes these
§ Combo of trade and investment
• The international monetary system
o Sources of international finance (international monetary law) are a smaller part in
the spaghetti bowl
o IMF = International Monetary Fed
Þ Core organisation in the area of international finance
A first introduction to the WTO …
• “30 years of the Marrakesh Agreement”
o https://youtu.be/pOL0X90FgF4
3. Current hot topics in IEL
WTO (DSB) crisis and beyond
• Starting since Doha 2001
o The crisis has been going on for a few years
• US - China trade conflict (and related EU position)
o The conflict between US and China has been going on a long time too. It actually
already started under the Obama administration.
• Recent US trade policy
4
