Sunday 7 November 2010

Child labour prohibition and international law






Child labour can be defined as, putting the child in hazardous conditions in regards to physical, ethical and educational development1. The modern definition comes from the International Labour Organisation (ILO)2.
The United Nations (UN) can be described as the ultimate authority on child labour in international law, in both legal aspects; human rights, labour law. Although regional treaties also exist (e.g. in the European Union, the Convention for the Protection of Human Rights and Fundamental Freedoms3)3.

In human rights, article 32 of the UN Convention on the Rights of the Child states that the member nations recognise the right of the child to be protected from the above mentioned conditions that constitute child labour4. A treaty ratified by most countries in the world thus creating a unified human rights framework. In labour law ILO holds the authority with the most important instruments being International Labour Convention 1385 (minimum a minimum age) and 1826 (definition of child labour).

Critics claim that the current system has many flaws; the most basic one being the voluntary nature of International law7 (e.g. India has yet to ratify convention 1828). Furthermore ILO has been criticised for the red tape involved in claims of breach9 and the lack of power to punish the non conforming member states10. There have also, been allegations of ILO being susceptible to political considerations11 (e.g. ignoring violations12). Moreover ILO conventions have been criticised as being written in vague language13.

To conclude, while an international framework exists, there are problems that stem back to the problematic nature of international law and national sovereignty. It should be noted that, over the last years child labour has been in marginal decline, an indication that the system works but its is still far from perfect.



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1. 'About child labour' (International Labour Organization)
2. Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour
3. Charter of Fundamental Rights of the European Union (as amended 364/01)
4. Convention on the Rights of the Child (adopted 20 November 1989, entered into force 2 September 1990) UNGA Res 44/25
5. Convention concerning Minimum Age for Admission to Employment
6. see n2
7. M. N. Shaw, International Law (5th edn, CUP 2004) p. 90
8. 'India and the ILO' (Indian Ministry of Labour)
9 . Kimberly Ann Elliott, 'The ILO and Enforcement of Core Labour Standards' [2000] volume 6, International Economics Policy Briefs
10.see n8
11. Steven Simpson, 'Enforcement of Human Rights through ILO Machinery' [1995] Human Rights Brief
12. Daya Gamage,' United States violates ILO Convention 182 allowing child labour' (Asian Tribune 12 July 2010)
13. Guy Standing, 'The ILO: An Agency for Globalization?' [2008] Development and Change



Saturday 6 November 2010

Quick follow up on the current currency war




Interesting developments on the ongoing currency war that I reported in my previous post, as the FED (i.e. the US Federal Reserve Bank ) has pumped 6 billion dollars more to fight unemployment. As a result the dollar value has fallen even more,compared to half a month ago that reached the lowest in 15 years, with an adverse effect on all import prices in the US market. In the meanwhile I am still looking for a report by WTO on the current event but they have yet to issue any thing. And the war goes on...


Wednesday 3 November 2010

WTO on state protectionism


About a month ago, I came across a very interesting article1 in the Guardian about the latest developments in international commercial law, specifically about the World Trade Organisation (WTO) in this brave new world of economic depression.


Unemployed men during the great depression (circa 1935)



In the article, Pascal Lamy2, WTO's director-general, commented on the current trend of governments to employ protectionism regulations, regarding their export-import ratios and the employment of tariffs3, as means of protection against the current global economic crisis. He draws similarities of this trend with the big recession of the 1930s4 where both devaluation of currency and the erection of import tariffs was employed to boost the domestic economies, but with a detrimental effect to foreign markets. He furthermore notes the current 'currency' war between the United States and China5(one of the few economic giants not to be part of WTO).

The big deal can be described as a form of state protectionism though as it turned out, helped the people more by providing employment than actualy helping the economy


WTO, GATT and protectionism

So why is the director-general condemning the protectionism policies of the 30's? The answer is found within the essence of WTO and GATT. Fifty years ago when the GATT was drafted, it had  a single aim. The progressive abolition of tariffs in the international commercial market. So essentially here we have two conflicting policies; one being the states trying to raise their shambled economies back on their feet and on the other hand the international commercial law framework based regulated by GATT and the WTO based on the economical liberal policies of Friedman and Hayek6 where state intervention, the employment of tariffs and in our current situation currency manipulation7 creates an uneven field. Thus turning the international market an unfriendly place to invest.

Even though I am not a proponent(on the contrary it is my belief that the current crisis is a product of  neoliberal economic policies) of the free market I concur that the director-general does have a point; the world economy is quite different in comparison to the 30s, with economic globalization being a central aspect of it. Thus there is the possibility of a domino effect that could bring the whole world to its knees, if the major economies choose to adapt a protectionism policy that favours only themselves. Also worth of notice is the effect that this will have in the recognition of WTO as an international organisation regulating international trade, with the result being the disdain of both the organisation and the system based on GATT (i.e. creating a legal anarchy in the field of international commercial law). As Keynes8 accurately stated capital must flow9 and in today's globalised economy, the statement applies more than ever.

ps. once again I stress my belief that a free market without any regulation is not the answer to either the current crisis or to solve more fundamental problems like unemployment or socioeconomic equity...and anyway in both a free market and a protectionism regime it is still the big companies that profit while most of the citizens have to bear in both situations the weight of their mistakes.




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  1. http://www.guardian.co.uk/business/2010/oct/14/pascal-lamy-wto-1930s-protectionism
  2. http://www.wto.org/english/thewto_e/dg_e/dg_e.htmTariff
  3. http://scm.ncsu.edu/public/trade/4tariffs.html
  4. http://www.ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.htm
  5. http://247wallst.com/2010/03/21/us-currency-wars-with-china-looms/
  6. M. Friedman F. Hayek
  7. http://blogs.forbes.com/streettalk/2010/04/06/currency-manipulation/
  8. http://en.wikipedia.org/wiki/John_Maynard_Keynes
  9. http://www.questia.com/googleScholar.qst;jsessionid=18FFF04566A0912620F50E0CF9A7DEAA.inst2_1b?docId=5000322441

Further Reading

Fairtrade Presentation


Click here to view our team's presentation slides on Fairtrade, I hope you will enjoy our hard work (damn you powerpoint and your complex settings) as much as we enjoyed making them.
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A brief introduction to GATT and the World Trade Organisation (WTO)

In this post I will try to briefly explain what WTO does as well as its importance in shaping and regulating international commercial law. As I started to write a post, about the current situation of WTO and its fight against the rising state protectionism, I realised that first we need to look at what is the WTO to illuminate the issue at hand. To sum up, this post is sort of an introduction to my next one.




A brief history of General Agreement on Tariffs and Trade (GATT)1 and the birth of WTO2

The GATT, was created in 19473 as a result of failed United Nations convention to create a world trade organisation for the advancement and regulation of an international trade legal framework. As the name suggests its main function is regulating  the tariffs in international trade, with subsequent conventions adding more pivotal rules such as, the laws of antidumping4 in 1964, international, intellectual property rules in 19865 etc. In 1993 the final amendment of pre WTO-GATT called for the creation of a world trade organisation and thus WTO was born. 

WTO membership map


The WTO, officially established under GATT 19946, is an international institution to facilitate and regulate international trade agreements using the amended GATT as a foundational authority in the judicial evolution that followed. WTO had quite a wider range of jurisdiction as it now also drafted treaties and agreements on services, goods,  international investment regulation, even creating its own international, commercial dispute resolution tribunal. Also worth of mention, is the establishment of a reviewing body on state trade policies and regulations.  WTO is ruled by a ministerial conference7, where the GATT ratifying member states meet to discuss amendments and new agreements usually every two-three years. Finally it should also be noted that from the creation of GATT, up till today there is a chronological arrangement of amendments and treaty ratifications separated in negotiating rounds8.

As a conclusion, I can only stress the fact that WTO is the only "pure" international body competent of creating and regulating an international commercial law framework with most of the countries of the world on board. Thus one of the most important authorities when in assessing the current situation of international trade and its governing laws.




ps. stay tuned for my next post on the current situation of the WTO framework and the rising trend of state protectionism in the international commercial market...


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Further reading

Tuesday 2 November 2010

Alternative international dispute resolution and international private law

In this post I will be exploring, yet another interesting aspect of international commercial law; Alternative Dispute Resolution (ADR), the practice of dispute resolution using private mediation rather than a court of law.




So what is ADR?

ADR, also called arbitration or mediation, is as the names suggest an alternative method of resolving disputes between parties without the use of judicial process (i.e. going to a court of law)1. ADR usually utilises an impartial person known as the mediator or arbitrator to render a decision on the dispute.

Types of ADR2

I. Negotiation, where parties interact with each other in order to resolve their dispute with the help of a mediator. In occasion the negotiation process is part of a larger ADR scheme; the first stage where the parties agree on various elements of the scheme as for example the participants and the subject of the dispute.

II. Mediation3, where a mediator (playing the part of an impartial negotiator) tries to achieve a resolution of the dispute in a private and flexible informal environment.

III. Expert determination, where a field expert (as the name suggests) is called to determine a dispute with technical issues. The outcome can be binding based on contract law or act as a formal recommendation.

IV. Arbitration,  the most utilised and used form of commercial ADR where the parties voluntarily agree to submit their dispute to an arbitrator or several (called an arbitration tribunal), where a decision is binding and the parties are usually obliged to agree not to pursue the said dispute into a court of law.

The problematic environment of International private law

So why is ADR such a popular tool in settling international disputes, even if it is essentially outside the boundaries of the established judicial system (although it is noteworthy that, ADR employs contract law, as a way to bind the parties and enforce the decision).

The answer is found within the nature of international private law...or as its called by scholars and lawyers alike, 'laws of conflict'4. The name tells us a story it self; there is no international court for civil action, there are no treaties establishing a unified system of international private law, to judge and enforce decisions. Essentially international private law is nothing more than a mechanism of finding which jurisdiction has the right to judge a civil case. Also in cases of domestic courts decisions, examining the validity of judgements by other domestic legal systems.  

It becomes obvious that ADR provides a better alternative in many cases of international commercial disputes, in comparison to established judicial systems. Even before the case an international private law case is judged, there is a need to establish which court is has the jurisdiction to precede over, sometimes with both systems claiming jurisdiction over the dispute. In the commercial world where money and time is of the essence, such procedures are simply anti-economical, usually causing damage to both parties involved in the dispute.

So there you have it; ADR is a flexible and economical alternative to the rigid and archaic legal systems, that are not fit to serve the needs of the modern international commercial market5. Also on a personal note, I cant help but notice the similarities between ADR and the medieval practices of Lex Mercatoria that covered in an older post.


ps. I know its a big post...
King Solomon, supposedly judged each case that was brought before him only by the merits and the facts of the case, employing many of the principles that modern arbitrators use.





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Further reading

Sunday 31 October 2010

Letter of credit briefly explained (or at least what I make of it)

As our first block is coming to an end and we are getting ready to plunge ourselves into the uncertain and complex world of international trade law, I took a sneak peek into our syllabus. Between many commercial concepts prescribed, I noticed the letter of credit, a very interesting mechanism employed in international commercial transactions especially in the carriage of goods by sea.

A typical letter of credit

A letter of credit is essentially a warranty of payment. Both a sign of financial competence for the international buyer and a safe heaven for the seller, in case that the buyer defaults. To get more specific a letter of credit is actually...a letter; issued by the buyers bank and guaranteeing payment (by a transaction from the buyers to the sellers bank) of an agreed sum , in case the buyer is unable to pay the commercial transaction himself. To get the letter, the buyer usually needs to either deposit the agreed sum of money in the bank that is issuing the letter or to take a loan from the bank. One of the most important aspects of the letter is that it has a termination date, meaning that if the buyer fails to pay up in the prescribed time (a certain date) the seller can ignore the buyer and go directly to his bank to collect what he is owed.

In an international market where a transaction can be affected by a large number of unforeseen factors (e.g. pirates, natural disasters, fall of regimes, and stock market crashes) a letter of credit provides much needed safety, essentially creating a protective barrier and guaranteeing that no matter  what happens, the agreed transaction will go through. Further more the letter of credit also deters fraud, a matter difficult to deal with in an international environment with many jurisdictions and little judicial control (especially if the fraudster is in the other side of the world).  

Further facts about the letter of credit



ps. still writing child labour essay...I now can confidently say that international labour law should be called international bureaucracy law...so much red tape so many committees...so little action...

Thursday 28 October 2010

Public authorities, neoliberal economic practices and war crimes

A few weeks ago as a preparation for a workshop, we had the task of finding the meaning of 'public authority' in the English law, especially in relation to the Human Rights Act of 1998. After conducting my research I concluded that the term public authorities is a truly problematic one especially when it comes to asserting rights. 



In most countries of the world, a legal entity is considered to be public authority when it is regulated by public law, such as the police, local authorities etc. Section 6(3b) of the Human Rights Act 1998  states that any person whose functions are of public nature is a public authority. Looks pretty straight forward...but its not.  The Human Rights Act of 1998 is essentially the implementation of the  European Convention on Human Rights (I not going to analyse the reasons why the act was implemented 50 years after the convention was drafted or the significance of the act being the first bill of rights after the 1689 Bill of Rights1) into the English law.

What might be the problem then? Simply fifty or so years ago public authorities throughout Europe had one major common characteristic they where all public...today in a globalized neoliberal environment...many of them are not (thankfully in this writers opinion, most of the core authorities are still public like say the police).

From the theories of  Milton Friedman 2, to the rise of Thatcherism3, to today's government austerity measures, over the last decades there has been a steady trend to the privatization of parts of the public services spectrum, creating a myriad of problems concerning the legal status of private but yet public authorities. Examples of the above mentioned problems can be seen especially in health care and public authorities where in various cases private elderly homes contracted by local authorities either closed or had to lay off workers in fear of bankruptcy and as a result leave elderly people in the street4. With the free market principles in effect when the said elderly people brought the cases to court alleging a violation of human rights the courts in most cases found that the elderly care homes where private companies, not public authorities thus there was no human rights violation.

But things get even worse... What made me consider writing this post was the front page of the Guardian a couple of weeks ago reporting on the death of an illegal immigrant from Africa during deportation, with witnesses alleging asphyxiation by the security guards accompanying him5. As the newspaper reported the deportation was handled by a private security firm under being under government contract. And so I posed the question to my self if the unfortunate mans family took the  private firm to the courts on a breach of human rights what would be the most possible outcome? Looking at the previews judgements concerning the nature of public authority, there is a high possibility that the security firm as a private company will be held not to be a public authority and thus no human right breach occurred as the right doesn't exist in the first place. It should be also noted that the problem of privatisation in connection to human rights exists in international law too, with the most pivotal example being the alleged human rights violations of the 'private security firms' (i.e. mercenaries) that the American government contracted during the war in Iraq, as they are private companies they are not obliged to act in accordance of various international treaties such as the Geneva Convention6.

What we are witnessing here, in my humble opinion is, commercial law and socioeconomical principles stepping over fundamental human rights in the name of the free market... let us hope that at least in the case of the UK the parliament will find a way to close the legal gap that allows such injustices to take place, something that in my opinion judicial review cannot cover. Finally concerning the international law aspect of the problem, as the saying goes ' in a war, its the victor that writes the history' and the laws also...

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1 .The 1689 Bill of Rights
3.  The dreaded thatcherism http://en.wikipedia.org/wiki/Thatcherism
4. A great example of the current way of thinking of what constitutes a Public Authority in the UK can be found in the judgement of Poplar Housing and Regeneration Community Association v Donoghue [2001] EWCA civ 595
5. The Guardian


On another note here is a video of a rap battle between Hayek and Keynes for who has the better ideas for coming out of the current globalised depression... enjoy

Sunday 24 October 2010

Is fairtrade fair?


Fairtrade initiatives, theory and practice

 Fairtrade initiatives and their proponents claim that the main objective of their philosophy is the creation of a trading partnership that helps and protects the small farmers and producers, as opposed to the principles of the free market where monetary profit is  the end itself1. To achieve its objectives, fairtrade is using several rules and regulations; a fixed price of produce, a price premium to benefit producers2. Also a strict certification procedure that includes standards such as better working conditions and environmental support based on corporate social responsibility3.

Meanwhile criticism of the rules and regulations of fairtrade also exist, as well as concerns for the core ideology behind them. On the subject of certification critics claim that fair trade is being unfair by having standards that fail its own principles (i.e. helping the poorest)4. Further more, case studies imply a problematic approach to technology and agricultural development and their benefits to the producer, that lies within the fairtrade model5. Other case studies report that rules concerning labour regulations are unjust to the workers as they promote unfair benefits cuts in favour of part-time labour4.  Apart from the deconstruction of fairtrade regulations, critics also assert the existence of corruption within the system with several cases that suggest  misappropriation of the price premium6.

Fairtrade has also being criticised for its economic model with many supporting that it fails to take into consideration major macroeconomic principles having catastrophic consequences to the market7. Finally, the marketing of fairtrade goods to consumers, has been deemed by opponents as controversial, creating a 'guilty concience'8 .

Concluding, fairtrade has a great concept to battle poverty and injustice in the third-world, however its implementation and operation, showcases many problems, some of them of fundamental nature.

In my opinion; a great idea yet problematic in practice.




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  1. World Fair Trade Organisation, ‘What is fair-trade?’  http://www.wfto.com/index.php?option=com_content&task=view&id=1&Itemid=13
  2. Fair Trade Labelling Organisations International, ‘What is fairtrade?’ http://www.fairtrade.net/what_is_fairtrade.html
  3. Fair Trade Labelling Organisations International, ‘Benefits of fairtrade’ http://www.fairtrade.net/benefits_of_fairtrade.html
  4. M Sidwell, Unfair Trade (Adam Smith Institute, London 2008)
  1. Mugged: Poverty in your coffee cup’, Oxfam International, 2002 p.18
  1. P Bahra, ‘Tea workers still waiting to reap Fairtrade benefits;  Premium paid for ethical goods may not be passed on, reports Parminder Bahra’ [2009] London Times http://www.timesonline.co.uk/tol/news/uk/article5429888.ece http://www.lexisnexis.com/uk/nexis/docview/getDocForCuiReq?lni=4V8W-X8W0-TX5B-909P&csi=10939&oc=00240&perma=true
  2.  D Henderson, ‘Fair Trade is Counterproductive and Unfair’ (2008) Economic Affairs 6  http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0270.2008.00847.x/full (can be accessed through NORA)
  3. K Deconinck, ‘Free marketeers attack Fairtrade principle’ (London 16 March 2004) < http://news.bbc.co.uk/1/hi/business/3542517.stm 
ps. my life lesson out of this?...we as consumers should try and look for what is going on behind the facade, cause some times things are not as good as they seem to be.

Thursday 21 October 2010

Lex Mercatoria, a medieval tale...

Since this blog is pretty much dedicated to commercial law and this is my first post I thought I'd start with a simple history lesson; especially in common law jurisdictions, legal evolution essentially shapes the contemporary aspect of any legal field.


A quite long intro (with quite a lot of lyricism)

Many aspects of our lives changed over the last three centuries; from the legal invention of limited liability and the shift from partnerships to new commercial company models to the constant technological advancement that started with the two industrial revolutions. Later on, the invention of the internal combustion engine and finally during the last 10-15 years with the rise of the internet and the age of economic globalization. With all those empirical evidence it is not weird for someone to assume that commercial law is an invention of capitalism to facilitate its vast different needs in comparison to the feudal society of the medieval times.

If we look back before the rise of the modern enterprises, the invention of the stock-market and the move from liveries to the modern industry we will find something familiar; Lex Mercatoria, the predecessor of contemporary commercial law.

So what is this Lex Mercatoria?

Lex Mercatoria, literally translated as merchant law, was a custom law containing trading and best practice rules could be described as the international commercial law of the medieval times (especially in respect to arbitration and dispute resolution).

Even by this minimal definition we start to see similarities it has with its contemporary counterpart; the main on being that it was of commercial nature. On the other hand Europe was quite a different (and a bit horrible) place to live during the medieval times; wars and invasions that constantly changed the borderlines, famine, the black death and the occasional highway man were but a few things a man of commerce had to deal with at the time. But even at those difficult times commerce flourished.

Thus the need for a system that will resolve injustice and disputes was needed...after all time was money and constantly new trade roots were discovered providing wealth to those who ventured them (e.g. Marco Polo that opened a trading route with China and incorporated past into the Italian culture)

Thus in many of the major trading routes tribunals where established with justice being administered by the merchants themselves (and usually no state interference). It could be truly called international as the custom rules that operated in the tribunals where pretty much common in most European countries making sort of one of the first international tribunals.

Another interesting fact was the use of the legal maxim ex aequo et bono to decide the cases presented in front of the tribunal. The maxim is literally translated as "according to the right and good" meaning that the cases where resolved with consideration of what was fair and good solely on the facts of the case drawing from the theories of natural law.

Hope you enjoyed our journey to the medieval times as much as I did...

Further reading (I omitted quite a lot like the link between the Lex and common law)
Enough with my rumblings have a nice weekend every one and good luck with the next essay title....

ps. I know this was a long post, lacking in coherency but I'm still trying to adjust to the fact that this is nor an essay nor my facebook page.

An obligatory welcome post…


Welcome to my humble legal blog,  lex naturalis (i.e. natural law), a blog that (hopefully) will provide criticism and analysis in legal affairs as part of my legal research module, especially issues and aspects of contemporary commercial law. In addition I look forward for it to be a testament in my (at least I hope) awesome quest(sic),to become a fully fledged researcher of law.
Regular posting will commence in the near future