There are various definitions and ideas about international law, and
according to one of those definitions, international law is a system of treaties
and agreements between states that controls how nations deal with other nations,
inhabitants of other nations, and corporations of other nations. In terms of
sorts of international law, it can be split into two important categories:
private and public international law.
International law, on the other hand, is nothing more than a system of norms
that control and concern the mutual relations of countries. Nations recognise
those norms as legally binding, and as such, they apply to all countries
regardless of state borders. The underpinning of the global economy is
international economic law. It is the legal framework that governs how
governments, organisations, and corporations interact in the global economy.
Treaties are the most common form of international economic law. These treaties
are frequently mediated between states and developed with the assistance of
international economic law specialists. They lay forth the regulations that
governments - and enterprises within those countries - must follow while
conducting global business. International economic law is a broad topic of law
with connections to commercial law, international law, international relations
political science, , and social science.
Objectives of International Economic Law
The global economy has undergone substantial changes over the past century as
countries and corporations have become more involved in cross-border trade of
commodities and capital and have adopted a more global perspective concerning
everything from capital to labour. In reaction to this rise in global economic
activity, global economic law was conceptualized and created. Via legal
frameworks, it seeks to formalize, regulate, and promote international
cooperation in the connections and exchanges between nations. It may also
- Upholding national sovereignty, including control over natural resources
and territorial, political, and economic autonomy.
- Coexistence in peace, or the absence of interstate conflict and
- Reciprocity: When nations gain equally and reciprocally.
- The amicable resolution of conflicts.
- Self-determination, fair treatment, and equality of rights.
- Upholding international commitments.
- Upholding human rights and advancing social justice.
- Developmental cooperation on a global scale.
- Giving emerging countries preferential treatment.
Regulations governing expropriation, which happens when a government seizes
control or possession of a foreign investor's asset located within its borders.
Instructions for international tribunals, arbitrators, and arbitrators.
National treatment, which calls for treating imported items equally with those
International economic law encompasses a variety of fields in addition to
international trade and investment law, including:
- International labour and services law, which spells out the
responsibilities of governments, unions, and employers in enforcing
- International monetary law, which aims to stabilise currency exchange
rates and promote global monetary cooperation.
- International intellectual property law, which governs and safeguards
intellectual property rights such as copyrights, trademarks, and patents
- International financial regulation, which specifies the rules and
guidelines for international banking, insurance, and securities with the
goal of preserving the integrity and stability of the world financial
- International development law, which governs international development
and often encourages or promotes relationships that are conducive to
sustainable and peaceful development.
- International tax law, which is used to determine how much money
businesses and corporations can keep from their operations and sales in
- International environmental law, which oversees and controls the wise
use and exchange of natural resources and is growing more significant as a
result of climate change.
Types of Treaties in International Economic law
A unilateral treaty is more accurately referred to as a unilateral act because
it is a piece of domestic legislation that has been created and approved by just
one country. Unanimous agreements are often an indication of solid faith from a
nation that wants to grant privileges and safeguards to foreign investors and
traders in an effort to draw in foreign investment as well as increase regional
Economic pacts between two countries are known as bilateral treaties. The
official representatives of each nation sign these formal agreements, which are
developed together. Typically, they set forth the terms and circumstances as
well as the privileges and safeguards for a reciprocal, beneficial commercial
Economic agreements involving three or more nations are referred to as
multilateral treaties. Due to the greater number of opposing interests, they can
be challenging to negotiate, but they often make it easier for multinational
corporations to import and export goods and trade while also lowering tariffs.
Major Institutions and Agreements
The World Bank is a global financial organisation with 189 member nations that
collaborate in an alliance. It was founded in 1944. Its goal is to help low- and
middle-income nations finance capital projects by giving them grants and loans.
The World Bank has funded more than 12,000 infrastructure projects with loans,
interest-free credits, and subsidies since it made its first loan in 1947.
International Monetary Fund
Along with the World Bank, the International Monetary Fund (IMF) was established
in 1944. It too is a global financial organisation, and the 190 countries that
currently make up its membership manage it. The three main goals of the IMF are
General Agreement on Tariffs and Trade
- Increasing global financial cooperation.
- Promoting increased commerce and economic growth.
- Opposing initiatives that would impede economic growth.
A legal economic pact known as the General Agreement on Tariffs and Trade (GATT)
was formed in 1947 with the goal of promoting global trade and reviving the
economy after the Second World War. It aimed to maintain regulations while
removing or lowering tariffs and trade obstacles internationally.
World Trade Organization
GATT was succeeded by the World Trade Organization (WTO) in 1995, and it now
oversees global international trade. The World Trade Organization (WTO) is an
intergovernmental organisation that collaborates with national governments to
develop, alter, and enforce rules of trade within the trading system to
guarantee "that trade flows as smoothly, reliably, and freely as feasible." To
set global financial law and protect global economic progress, most of the
trading nations of the world draught, sign, and ratify WTO laws and accords in
their national legislatures.
There is a vast body of international economic law that is expanding quickly and
changing quickly. Almost all facets of the economic relationship between
governments are intended to be regulated. In the decades following the Second
World War, international economic law emerged as a distinct and recognizable
body of law.
Previous to this, public international law was thought to include a primitive
form of law that pertains to global economic activity, such as the protection of
foreign investment. The World Bank and the International Monetary Fund are two
of the Bretton Woods Institutions, which were established in 1944. (IMF). These
institutions were intended to promote cooperative decision-making and trading in
the context of economic and trade interactions.
In order to overcome the detrimental impacts of the previous global economic
slump and trade conflicts, rebuild the post-war economy, and encourage economic
collaboration between states, a multilateral framework was required.
Agreement on Tariffs and Trade was established in 1948, following the creation
of the Bretton Woods institutions, with the goal of eradicating harmful trade
protectionism, removing tariffs, fostering global trade, and reviving the
world's economy following the devastation of World War II. The more powerful
World Trade Organization (WTO) took the role of GATT, though, in 1995.
Award Winning Article Is Written By: Mr.Akshatra Sharma
Authentication No: MR307678742856-17-0323