Integration and International Dispute Resolution in Small States (eBook)

Foreword 6
Preface 8
Contents 10
About the Editors and Authors 12
Part I: Introduction 18
Chapter 1: Small States and Integration: An Introduction 19
1.1 Introduction 19
1.2 Small States 20
1.2.1 Challenges Due to Size 21
1.2.1.1 Vulnerability to Economic Shocks and Income Volatility 21
1.2.1.2 Limited Capacity 21
1.2.1.3 Difficulty Accessing External Capital 21
1.2.2 Challenges Due to Geography 22
1.2.2.1 Limited Competitiveness 22
1.2.2.2 Susceptibility to Natural Disasters and Climate Change 22
1.3 Integration in Small States 22
1.3.1 Definition 22
1.3.2 Examples 23
1.3.3 Impact 23
1.3.4 Integration Issues Faced by Small Island States 24
1.3.4.1 Regional Agreements 25
1.3.4.2 Dichotomy Between Ambition and Reality 26
1.3.5 Approaches to Regulation of Trade and Finance in Small States 27
1.3.5.1 Opportunities Based on Innovative Regulations for Trade and Finance in Small States 27
1.3.5.2 Renewable Energy 28
1.3.5.3 Traditional Knowledge 28
1.3.6 Small States as Financial Centres 29
1.4 Dispute Resolution and Small States 30
1.4.1 Dispute Resolution Involving Small States 30
1.4.1.1 State-to-State Disputes Involving Small States 30
1.4.1.2 Investor-State Dispute Settlement Involving Small States 32
1.4.2 International Business-to-Business Dispute Resolution in Small States 33
1.4.2.1 Cross-Border Litigation in Small States 33
1.4.2.2 International Commercial Arbitration in Small States 34
1.4.2.3 International Tax Dispute and Small States 36
1.4.2.4 International Mediation in Small States 38
1.5 Conclusions 39
References 39
Part II: Integration 41
Chapter 2: Small States and Regional Dispute Resolution Mechanisms: The Caribbean and Pacific Experiences 42
2.1 Introduction 42
2.1.1 Rationale 44
2.1.2 Critique 44
2.1.3 Chapter Outline 45
2.2 Analytical Framework 46
2.2.1 The Relevance of State-Size 47
2.2.2 Small States as a Contested Concept 47
2.2.3 Small States and Regional Dispute Resolution 49
2.2.4 Conclusions 51
2.3 Regional Dispute Resolution and Small States: The Caribbean and the Pacific 52
2.3.1 Caribbean Integration: The CARICOM Experience 53
2.3.1.1 General Characteristics of the CARICOM Member States 54
2.3.1.2 CARICOM and Its Dispute Settlement Mechanisms 55
2.3.2 Pacific Island Countries Integration 59
2.3.2.1 General Characteristics of Pacific Islands Countries 59
2.3.2.2 The MSG, PICTA, PACER, PACER Plus and Their Dispute Settlement Mechanisms 62
2.4 Concluding Remarks 68
References 70
Chapter 3: Enforcement of Regional Economic Integration in the Caribbean: Treaty Enforcement by the Caribbean Court of Justice... 75
3.1 Introduction 75
3.2 The Caribbean Community 77
3.3 Nature of CARICOM Single Market and Economy (CSME) 79
3.4 Nature of the Court 80
3.5 Domestic Enforcement of Community Law: The Role of the CCJ 81
3.5.1 Shanique Myrie v Barbados 82
3.5.2 Maurice Tomlinson v Trinidad and Tobago and Belize 84
3.6 Closer Co-operation by a Sub-Unit within the CARICOM Context 90
3.6.1 Focal Topic: Free Movement 91
3.6.2 Enhanced Co-operation Under EU Law 92
3.6.3 Subsequent Regime: Balanced Substantive Rights 96
3.7 Conclusions 98
References 99
Part III: Business Relations with and within Small States 101
Chapter 4: Achieving Sustainable Development Goal 8 in Small Island Developing States by Capital Raising Law Reform: Case Stud... 102
4.1 Introduction 102
4.2 Financing Constraints in Small Island Developing States 104
4.2.1 Differences Between Small Island States and Pacific Small Island States 106
4.2.2 The Case of Fiji: Fiji´s Progress Towards the Millennium Development Goals (MDGs) 107
4.2.3 The 2030 Agenda: How Can Fiji Realign Its Development Path to Meet the New Sustainable Development Goals? 109
4.3 Capital Raising Regime in Fiji Before January 2016 111
4.3.1 Unit Trusts Act 1978 (Cap 228) 111
4.3.2 Companies Act (Cap 247) 111
4.3.3 Capital Markets Decree 2009 (CMD) 111
4.4 Problems with the Prior Regime 112
4.5 The Companies Act 2015 113
4.6 Capital Raisings Under Part 26 of the Companies Act 2015 114
4.6.1 Obligation to Publish a Prospectus 114
4.6.2 Exemptions from the Obligation to Publish a Prospectus 115
4.6.3 Exceptions for Certain Issuances 116
4.6.4 Prospectus Content Requirements 117
4.6.5 Validity of a Prospectus and Liability for Defective Information 117
4.6.6 Limited Nature of Exemptions from the Obligation to Publish a Prospectus and the High Costs of Compliance 117
4.7 Reform Options 118
4.7.1 Reforming the Secured Transactions Regime: Secured Transactions as a Domestic Resource Mobilisation Tool 118
4.7.2 Introduction of ``Community Companies´´: Community Companies as a DRM Tool 120
4.7.3 Legislative Requirements Applying to Community Companies 121
4.7.4 A ``Small Business Access to Capital Bill´´ 122
4.7.5 Amendments to the Companies Act 2015 123
4.8 Conclusions 123
References 124
Chapter 5: Getting the Definition of ``Consumer´´ Right: Worrying About the Smaller Ones in Fiji 127
5.1 Introduction 127
5.2 The Framework of Consumer Protection Legislation in Fiji 128
5.2.1 The Current Statutory Definitions of a `Consumer´ in Fiji and their Defects 129
5.2.1.1 Fijian Competition and Consumer Commission Act 2010 129
5.2.1.2 Consumer Council of Fiji Act 1976 130
5.2.1.3 Consumer Credit Act 1999 131
5.3 Background of Micro and Small Enterprises in Fiji 131
5.3.1 Fiji Bureau of Statistics Economic Survey 2004 132
5.3.2 The Reserve Bank of Fiji Comments 133
5.3.3 The National Centre for Small and Micro Enterprises Development Survey 2009 133
5.3.4 Case Studies 135
5.4 Rationale for Consumer Protection 136
5.5 A Critical Analysis of the Proposal to Broaden the Definition of `Consumer´ 138
5.5.1 Arguments for Broadening the Definition of `Consumer´ 138
5.5.1.1 Rationale for Consumer Protection 138
5.5.1.2 Importance of MSEs to the Economy 139
5.5.2 Arguments Against Broadening the Definition of `Consumer´ 139
5.6 Issues in Broadening the Definition(s) of Consumer in Fiji 141
5.6.1 Consumer Credit Laws 141
5.6.2 Unfair Contract Terms 142
5.6.3 Expansion of the Definition to Businesses or ``Business-Consumers´´? 144
5.7 Proposed Definition of `Consumer´ 146
5.7.1 The New Definition 147
5.7.2 Explanation 147
5.7.2.1 Scope of the Proposed Definition 147
5.7.2.2 Reference to the Definitions of Micro and Small Enterprise in Small and Micro Enterprises Development Act 2002 148
5.7.2.3 The Idea of the New Definition of `Consumer´ 149
5.8 Conclusion 150
References 150
Chapter 6: Intellectual Property Consequences of Commercial Relations with Small States: A View from the Pacific 152
6.1 Introduction 152
6.2 Trade Agreements 155
6.3 Intellectual Property and Trade Agreements 159
6.3.1 The WTO in the Pacific 160
6.3.2 A Regional Response 162
6.4 Why Relying on Intellectual Property Protection in the Pacific May Be Challenging 164
6.5 Realising the Alternatives 167
6.6 Conclusion 168
References 170
Part IV: Small States as Financial Centres 175
Chapter 7: How Small Jurisdictions Compete in International Financial Services 176
7.1 Introduction 176
7.2 Small Jurisdictions in Cross-Border Finance 178
7.2.1 Bermuda 178
7.2.2 Dubai 178
7.2.3 Singapore 179
7.2.4 Hong Kong 180
7.2.5 Switzerland 181
7.2.6 Delaware 181
7.3 Why Certain Small Jurisdictions Succeed 182
7.3.1 ``MDSJs Are Small and Poorly Endowed with Natural Resources, Limiting Their Economic Development Options´´ 184
7.3.2 ``MDSJs Possess Legislative Autonomy´´ 184
7.3.3 ``MDSJs Are Culturally Proximate to Multiple Economic Powers, and Favorably Situated Geographically vis-à-vis Those Powe... 185
7.3.4 ``MDSJs Heavily Invest in Human Capital, Professional Networks, and Related Institutional Structures´´ 186
7.3.5 ``MDSJs Consciously Balance Close Collaboration with and Robust Oversight of the Financial Professional Community, Seeki... 186
7.4 Conclusions 190
References 192
Chapter 8: The Value of IFCS and Focusing on Facts Rather than Fiction 195
8.1 Introduction 195
8.2 Exaggerated and Unsubstantiated Claims 197
8.3 An Emotive Argument 198
8.4 Offshore Does Not Equal Illicit 200
8.5 Research to Balance the Debate 204
8.6 A Booming Continent? 205
8.7 Engagement Is Key 207
8.8 Abandon Stereotypes 208
References 208
Chapter 9: Small State International Financial Centres: A Chance to Reclaim the High Ground on Human Rights? 211
9.1 Introduction 211
9.2 The Problem 212
9.3 Human Rights and Small Communities 216
9.4 Human Rights and International Finance: Finding a New Narrative 219
9.5 What Issues Matter to Communities in Small States? 220
9.5.1 Climate Change 220
9.5.2 Women´s Rights 222
9.6 Conclusion 223
References 224
Part V: Litigation and Arbitration 227
Chapter 10: Integration and Dispute Resolution in Small States 228
10.1 Introduction 228
10.2 Advantages of International Commercial Arbitration for Small States 229
10.3 Adoption of International Instruments for Arbitration 230
10.3.1 The New York Convention 231
10.3.2 The Model Law 233
10.3.3 How the Convention and Model Law Come Together 235
10.4 Adoption of a Bilateral Arbitration Treaty 235
10.4.1 What Are BATs? 236
10.4.2 BATs and Small States 238
10.5 Conclusion 240
References 240
Chapter 11: International Arbitration and Domestic Laws: A Symbiotic Interaction? 242
11.1 Introduction 242
11.2 Arbitration as a ``Go To´´ Option in Cross-Border Transactions 243
11.2.1 Empirical Efforts 243
11.2.2 The Application of the Law on an ``As Is´´ Basis 249
11.3 International Arbitration and Domestic Laws: Intersections, Cross-Fertilisation, Side Effects? 252
11.4 Conclusion 255
References 256
Chapter 12: International Tax Arbitration: A New Avenue for Small State International Financial Centres? 258
12.1 Introduction 258
12.2 Should Small State International Financial Centres Specialise in Tax Arbitrations? 259
12.2.1 What Is a SS IFC? 259
12.2.2 Why Should SS IFCs Make an Additional Offering of ``Tax Arbitration´´ 261
12.3 How to or How Not to Offer Tax Arbitration 263
12.4 Investor-State Investment Treaty Tax Arbitration 267
12.4.1 Scope of Investment 267
12.4.2 Existence of a Treaty 268
12.4.3 Arbitrability of Tax Disputes 270
12.4.3.1 Different Clauses in BITs 270
12.4.3.2 Protections and Guarantees Under Tax-Related Claims 274
Expropriation 275
Fair and Equitable Treatment 277
Non-Discrimination 278
12.5 Modified Versions of BITs to Make the Offering 280
12.5.1 Investment Contracts 280
12.5.2 Private Investment Treaty 280
12.6 Small States Should Accede to the New York Convention 282
12.7 Conclusion 283
References 283
Chapter 13: Kosovo: The Perspective of a Pro-Arbitration Country 286
13.1 Introduction to Commercial Arbitration in Kosovo 286
13.2 National Arbitration Law 288
13.2.1 Introduction 288
13.2.2 Structure of the Law 289
13.2.3 Main Provisions 291
13.2.3.1 Arbitrability 291
13.2.3.2 The Arbitration Agreement 292
13.2.3.3 Competence-Competence and Separability 293
13.2.3.4 The Role of Local Courts in Arbitration Proceedings 294
13.2.3.5 Interim Measures 296
13.3 New York Convention and Its Applicability in Kosovo 296
13.3.1 General Observations 296
13.3.2 The Risk of Enforcing Kosovo Made Awards Abroad 298
13.3.3 Article 39: The Unilateral Accession 299
13.4 The Practice of Arbitration in Kosovo 300
13.4.1 Country-Specific Issue: Arbitration in Public Contracts 301
13.5 The Perspectives of the Country in International Arbitration 303
13.5.1 Investment Law and ICSID Membership 303
13.5.2 Membership to Permanent Court of Arbitration 306
13.6 Conclusion 307
References 307
Chapter 14: International Litigation and the Caribbean Court of Justice 309
14.1 The Caribbean Court of Justice: A Unique Judicial Institution 309
14.2 The CCJ and Public International Law Litigation: The Rule of Law 312
14.2.1 Rule of Stare Decisis 312
14.2.2 Judicial Review of Community Acts 314
14.2.3 Standing of Individuals to Bring Actions 315
14.2.4 Legal Threshold for Standing 316
14.2.5 Rights Found to Have Been Breached 317
14.3 Remedies 318
14.3.1 Damages 318
14.3.2 Coercive Orders 319
14.3.3 Reimbursements and Monitoring of Compliance 319
14.3.4 Declarations 320
14.4 Implementation by Member States 320
14.5 Greater Participation and Access 321
14.6 Private International Litigation: The Appellate Jurisdiction 322
14.7 Conclusion 323
References 324
Chapter 15: Cost-Efficiency in Inter-State Dispute Settlement 325
15.1 Introduction 325
15.2 Institutional Paths: Reducing Costs Through Established Funds 327
15.2.1 The ICJ Trust Fund 327
15.2.2 The ITLOS Trust Fund 330
15.2.3 The PCA Financial Assistance Fund 331
15.3 Independent Paths: Reducing Costs Through Third Parties or Internal Means 334
15.4 Mutual Paths: Reducing Costs Through Agreement of the Parties 335
15.5 Assessment and Proposals for Reform 337
References 341