Do Economic Free Zones Pass Legal Scrutiny?

A Review on Existing and Emerging International Law on Foreign Direct Investment in Economic Free Zones

TABLE OF CONTENTS Table of Abbreviations Acknowledgements Introductory Remarks Part I The Zones 1. From Ancient China to Internet and Media 2. The Legal Construction 3. Outlook Part II The Nature of International Law Part III Lex Lata – Established Law 1. General Principles of Law 2. Customary International Law 2.1 Multilateral Instruments 2.1.1 The World Bank Guidelines 2.1.2 The Multilateral Agreement on Investment 2.1.3 Regional Treaties 2.2 Bilateral Investment Treaties 2.3 National Law 2.4 Conclusion 3. Other Sources of Law 4. Treaty Law 4.1 Multilateral Instruments in General 4.2 The World Trade Organization 4.2.1 The TRIMs Agreement 4.2.2 Subsidies 4.2.3 The GATS 5. Conclusion Part IV Lex Ferenda – Conflicts and Developments 1. Potential Conflicts of Law 1.1 International Law on FDI vis-à-vis Free Zones 1.1.1 State Sovereignty and Free Zones 1.1.2 State Contracts and Acquired Rights 1.1.3 Conflict Solving 1.2 WTO Law in General 1.3 Subsidies 2. Possibly Emerging Law 2.1 General International Law 2.2 Trade-Related WTO Law 2.3 Towards a Multilateral Investment Agreement? 3. Conclusion Bibliography Annex I States bound by the Agreement on SCM as of June 2003 Annex II States in the process of accession to the WTO Annex III LDCs that are WTO members as of June 2003 Annex IV States with a GNP below $ 1,000 as of June 2003 Annex V States which have negotiated exceptions (to various extents) from the Agreement on SCM until January 1, 2008