Since the prohibition of the threat or use of force and the resurgence of (economic) nationalism, economic warfare has become an increasingly important substitute for actual hostilities between states. Its manifestations range from medieval sieges to modern day trade wars. Despite its long history, economic warfare remains an elusive term, foreign to international law. This book seeks to identify those portions of international law that are applicable to economic warfare. What is the status quo of regulation? Is there a jus ad bellum oeconomicum? A jus in bello oeconomico?
After putting forward its own definition of economic warfare, the book reviews historical case studies – reflecting the three main branches of international economic law: trade, investment and currency – to identify pertinent legal boundaries. While the case studies reveal that numerous rules of international (economic) law regulate (specific measures of) economic warfare, it remains to be seen whether – analogously to the prohibition of the threat or use of force – these selective limitations have the potential to coalesce into a general prohibition of economic warfare in the future.
Author(s): Teoman M. Hagemeyer-Witzleb
Series: European Yearbook of International Economic Law, 16
Publisher: Springer
Year: 2021
Language: English
Pages: 423
City: Cham
Contents
Abbreviations
List of Figures
List of Tables
Chapter 1: Introduction
1.1 Economic Warfare: Overlooked?
1.2 Economic Warfare: An Instrument of Growing Importance
1.2.1 A Partial Substitute for War
1.2.2 Reinvigorated Nationalism and Rise of Economic Nationalism
1.2.3 Summary
1.3 Aim, Scope, and Limitations of This Work
1.3.1 Research Goals and How to Reach Them
1.3.2 What Will Not Be Addressed Here
Chapter 2: Key Terms, Concepts, and Course of Inquiry
2.1 Absence of a Legal Concept and the Need of a Definition
2.2 Defining Economic Warfare
2.2.1 Common Use
2.2.2 Use by Scholars
2.2.2.1 No Definition Necessary
2.2.2.2 The French School of Economic Warfare
2.2.2.3 No Definition Possible
2.2.2.4 Broad Definitional Concepts
2.2.2.5 Lowenfeld´s Proposal and Its Modification for the Purposes of This Work
2.2.2.5.1 Measures Taken by (But Not Necessarily Against) Subjects of International Law
2.2.2.5.2 Economic vs. Military Measures
2.2.2.5.3 The Intent Behind the Measure
2.2.3 Economic Warfare: The Working Definition
2.2.4 What Is Gained by the Working Definition (and What Is Not)
2.2.5 Need It Be Called ``War´´?
2.2.6 Taxonomy of Related Terminology
2.2.6.1 Boycott
2.2.6.2 Embargo
2.2.6.3 Sanction
2.2.6.3.1 UN Sanction
2.2.6.3.2 EU Sanction (Restrictive Measure)
2.2.6.3.3 Sanctions as Measures of Economic Warfare
2.2.6.4 Blockade
2.2.6.5 Retorsions and Countermeasures
2.3 Plan of This Work
Chapter 3: Trade War
3.1 Embargoes
3.1.1 Case in Point: The ``Oil Weapon´´ 1973 to 1974
3.1.2 Legal Issues
3.2 Sanctions
3.2.1 Case in Point: Southern Rhodesia
3.2.2 Legal Issues
3.3 Tariffs, Quotas, and Dumping
3.3.1 Case in Point: The United States Trade War of 2018
3.3.1.1 Steel and Aluminum, Friends and Foes
3.3.1.2 South Korean and Chinese Washing Machines and Solar Panels
3.3.2 Legal Issues
3.4 Strictures on and Legality of Trade War
3.4.1 Prohibition of the Threat or Use of Force: Economic Force
3.4.1.1 Proponents of a Wide Understanding of ``Force´´ and Their Arguments
3.4.1.2 Opponents of a Wide Understanding of ``Force´´ and Their Arguments
3.4.1.3 Conclusion
3.4.2 Principle of Non-intervention: Economic Force
3.4.2.1 Domaine Réservé
3.4.2.2 When Is an Intervention Unlawful?
3.4.2.3 Conclusion
3.4.3 Human Rights and International Humanitarian Law
3.4.3.1 Human Rights Law
3.4.3.2 International Humanitarian Law
3.4.3.2.1 Direct Application
3.4.3.2.2 Analogy?
3.4.3.3 Conclusion
3.4.4 WTO Law and Related Agreements of International Economic Law
3.4.4.1 GATT and Tariffs, Quotas, and Dumping
3.4.4.1.1 Tariff Bindings
3.4.4.1.2 Prohibition of Quantitative Restrictions
3.4.4.1.3 No Prohibition or Regulation of Dumping
3.4.4.1.4 Other GATT Obligations
3.4.4.2 Exceptions from GATT Obligations
3.4.4.2.1 Tariffs, Quotas, ``Anything Under the Sun´´? The General and the Security Exception (Art. XX and XXI GATT)
3.4.4.2.1.1 Art. XX GATT
3.4.4.2.1.2 Art. XXI GATT
3.4.4.2.2 Tariffs and Quantitative Restrictions as Protection (for the Domestic Solar Panel and Washing Machine Industry)? The...
3.4.4.2.3 Tariffs as Reaction to (Steel and Aluminum) Dumping? The Antidumping Agreement
3.4.4.3 Compulsory and Exclusive Jurisdiction of the WTO? The Dispute Settlement Understanding
3.4.5 Quotas and Tariffs Under Free Trade Agreements and Regional Trade Agreements
3.4.6 International Law Obligation of Economic Co-Operation?
3.4.7 Summary
Chapter 4: Investment War
4.1 State-Controlled Investments and Defense Systems Thereto
4.1.1 Case in Point: Sovereign Wealth Funds and Investment Screening and Control Mechanisms
4.1.1.1 Prelude: Prerequisites for State-Controlled Investments Abroad
4.1.1.1.1 International Capital Movement
4.1.1.1.2 Strategic Investment Plans
4.1.1.1.2.1 China´s Belt and Road Initiative
4.1.1.1.2.2 Made in China 2025
4.1.1.1.3 Summary
4.1.1.2 Introduction: The Aixtron Takeover Attempt
4.1.1.3 State-Controlled Investments: Sovereign Wealth Funds
4.1.1.4 Defense Systems: Investment Screening and Control Mechanisms
4.1.1.4.1 Definition, History, Functions
4.1.1.4.2 Lay of the Land: Investment Screening and Control Mechanisms (Excursus)
4.1.1.4.2.1 United States: Committee on Foreign Investment
4.1.1.4.2.1.1 History
4.1.1.4.2.1.2 Procedure and Powers
4.1.1.4.2.1.3 Material Criteria
4.1.1.4.2.1.4 Judicial Review
4.1.1.4.2.2 Germany: Außenwirtschaftsgesetz and Außenwirtschaftsverordnung
4.1.1.4.2.2.1 History
4.1.1.4.2.2.2 Procedure and Powers
4.1.1.4.2.2.3 Material Criteria
4.1.1.4.2.2.4 Judicial Review
4.1.1.4.2.3 European Union: Screening Regulation
4.1.1.4.2.3.1 History
4.1.1.4.2.3.2 Procedure and Powers
4.1.1.4.2.3.3 Material Criteria
4.1.1.4.2.3.4 Judicial Review
4.1.1.4.2.4 The Bigger Picture
4.1.1.4.2.5 Commonalities and Differences
4.1.1.4.2.5.1 History as Explanation for Ideological, Economic, and Political Underpinnings
4.1.1.4.2.5.2 Legal Design, Competent Authorities, Procedure, and Powers
4.1.1.4.2.5.3 Of Material Criteria, Sectors and Industries, Transparency, and Clarity
4.1.1.4.2.5.4 Judicial Review and Access to Justice
4.1.1.4.2.6 Excursus Summary: Vastly Proliferated, Easily Deployable Weapons of Economic Warfare
4.1.2 Legal Issues
4.1.2.1 As regards Sovereign Wealth Funds
4.1.2.2 As regards Investment Screening and Control Mechanisms
4.1.2.3 Summary of Legal Issues
4.2 Nationalizations
4.2.1 Case in Point: Nationalization of Venezuelan Oil Production Associations
4.2.2 Legal Issues
4.3 Strictures on and Legality of Investment War
4.3.1 International Investment Law
4.3.1.1 Market Access as Restriction to States´ Freedom to Impose Restrictions on Capital Inflows
4.3.1.1.1 Principal Freedom of States to Deny the Access of Foreign Capital
4.3.1.1.2 Exceptions to the Rule
4.3.1.1.2.1 Multilateral Agreements
4.3.1.1.2.2 Regional Agreements
4.3.1.1.2.3 Bilateral Agreements
4.3.1.2 Indications of the Role of International Investment Law for Economic Warfare
4.3.1.2.1 Investment Screening and Control Mechanisms, International Investment Law Prescriptions for Their Design, and Market...
4.3.1.2.2 Do International Investment Agreements Protect Sovereign Wealth Funds´ Investments?
4.3.1.2.3 Legality of Nationalizations as an Example for the Relevance of International Investment Law for Economic Warfare
4.3.1.2.4 Summary
4.3.2 Investment War and International Monetary Law
4.3.3 The Role of ``Soft Law´´ for Investment War
4.3.4 General Principle of Non-Discrimination
4.3.5 Summary
Chapter 5: Currency War
5.1 Case in Point: The Allegedly Undervalued Renminbi
5.2 Legal Issues
5.3 Strictures on and Legality of Currency War
5.3.1 GATT and Agreement on Subsidies and Countervailing Measures
5.3.1.1 Import-Tariff-Cum-Export-Subsidy?
5.3.1.1.1 Import Tariff?
5.3.1.1.2 Export Subsidy?
5.3.1.1.3 Summary
5.3.1.2 Art. XV:4 General Agreement on Tariffs and Trade
5.3.2 Articles of Agreement of the International Monetary Fund
5.3.3 International Law of Certain Forms of Self-Help
5.3.4 Summary
Chapter 6: Sector Non-Specific Economic Warfare
6.1 Extraterritorial Legislation
6.1.1 Case in Point: Antitrust Laws and Blocking Statutes
6.1.1.1 Antitrust Laws
6.1.1.2 Blocking Statutes vs. Embargo Laws
6.1.2 Legal Issues
6.2 International Agreements
6.2.1 Case in Point: (Threat of) Termination of International Agreements
6.2.2 Legal Issues
6.3 Strictures on and Legality of Sector Non-Specific Measures
6.3.1 International Law Limits for Extraterritorial Legislation
6.3.2 Blocking and Claw-Back Statutes as Self-Help
6.3.3 Law of Treaties
6.3.4 Law of Neutrality in Economic Warfare?
6.3.5 Summary
Chapter 7: Legality and Law of Economic Warfare
7.1 Jus ad Bellum Oeconomicum: Is There a Right of States to Wage Economic War?
7.1.1 Theoretical Fundament and Implications
7.1.2 International Law Rules That Can Render Economic Warfare Illegal or Legal
7.1.2.1 Treaty Rules on Illegality
7.1.2.2 Customary Rules on Illegality
7.1.2.2.1 1990: Economic Warfare in Contemporary International Law
7.1.2.2.2 Present: Customary Jus ad Bellum Oeconomicum
7.1.2.3 Rules on Legality (Justifications)
7.1.2.3.1 Decisions in Accordance with Chapter VII of the UN Charter and Other Sanctions
7.1.2.3.2 International Law of Certain Forms of Self-Help
7.1.2.3.3 Security Exceptions
7.1.2.3.4 Self-Defense
7.1.3 Summary and Outlook
7.2 Jus in Bello Oeconomico: Strictures on Certain Measures of Economic Warfare
7.2.1 Strictures Imposed by International Economic Law
7.2.1.1 International Trade Law
7.2.1.2 International Investment Law
7.2.1.3 International Monetary Law
7.2.1.4 Soft Law
7.2.2 Strictures Imposed by General International Law
7.2.2.1 Human Rights and Humanitarian Law
7.2.2.2 International Law of Certain Forms of Self-Help
7.2.2.3 International Law Limits for Extraterritorial Legislation
7.2.2.4 Other Strictures of General International Law?
7.2.3 Summary and Outlook
Chapter 8: Final Conclusions
8.1 The Current State and Future of the Jus ad Bellum Oeconomicum and the Jus in Bello Oeconomico
8.1.1 Current State of Regulation of Economic Warfare
8.1.2 Prospects of and Case for Regulation
8.2 The Main Theses of This Work
Bibliography
