A guide to the techniques and institutions used to solve international disputes,how they work and when they are used. Many, often topical examples place thetheory of how things are supposed to work in the context of real-life eventsso that you can understand the strengths and weaknesses of different methodsin practice. The fully updated edition of this successful textbook includes themost recent arbitrations, developments in the WTO and case law from theInternational Court of Justice.
J. G. Merrills has taught international law all over the world for more thanforty years. He held visiting posts at the Universities of Auckland and Toronto,twice served as Dean of the Faculty of Law at Sheffield University and for eightyears was Alternate Member of the UN Sub-Commission on Prevention ofDiscrimination and Protection of Minorities. He is the author of various booksand journal articles on international law, and is a member of the AmericanSociety of International Law and of the British Institute of International andComparative Law. In 2007 he was elected an Associate Member of the Institutde Droit International.
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First published 2011
Printed in the United Kingdom at the University Press, Cambridge
A catalogue record for this publication is available from the British Library
Library of Congress Cataloguing in Publication dataMerrills, J. G.International dispute settlement / J. G. Merrills. – 5th ed.
p. cm.Includes bibliographical references and index.ISBN 978-0-521-19909-4 (hardback)1. Pacific settlement of international disputes. I. Title.JZ6010.M47 2011341.5′2 – dc22 2010051865
ISBN 978-0-521-19909-4 HardbackISBN 978-0-521-15339-3 Paperback
Cambridge University Press has no responsibility for the persistence oraccuracy of URLs for external or third-party internet websites referred toin this publication, and does not guarantee that any content on such websites is,or will remain, accurate or appropriate.
Preface page ixTable of cases xiTable of treaties and agreements xviiList of abbreviations xxivList of websites xxvi
1 Negotiation 1Consultation 2Forms of negotiation 8Substantive aspects of negotiation 11Negotiation and adjudication 16Limitations of negotiation 21
2 Mediation 26Mediators 27Consent to mediation 29Functions of mediation 33The limits of mediation 37
3 Inquiry 41The 1899 Hague Convention 41The Dogger Bank inquiry 42Inquiries under the 1907 Hague Convention 44Treaty practice 1911–40 47The Red Crusader inquiry 48The Letelier and Moffitt case 51The value of inquiry 53
4 Conciliation 58The emergence of conciliation 58The work of commissions of conciliation 60The practice of conciliation 65The place of conciliation in modern treaty law 69Further developments 74The significance of conciliation 79
5 Arbitration 83Forms of arbitration 83The selection of arbitrators 86Terms of reference 89Basis of the decision 94Effect of the award 100Private international arbitration 106The utility of arbitration 111
6 The International Court I: organisation and procedure 116Contentious jurisdiction 116Jurisdictional disputes 119Incidental jurisdiction 124Advisory jurisdiction 132Membership of the Court 134Chambers 137
7 The International Court II: the work of the Court 142The Court’s decision 142Extension of the Court’s function 147Legal and political disputes 152The effect of judgments 156The significance of the Court 161
8 The Law of the Sea Convention 167The Convention and its system 167The principle of compulsory settlement 169Exceptions to the principle of compulsory settlement 172Conciliation 174Arbitration 176Special arbitration 179The International Tribunal for the Law of the Sea 181The Sea-Bed Disputes Chamber 183Inaugurating ITLOS 186The significance of the Convention 189
9 International trade disputes 194From GATT (1947) to the World Trade Organization 194The Dispute Settlement Understanding 195Consultations 197Good offices, conciliation and mediation 199Panel proceedings 201Appellate review 205
Implementation of rulings and recommendations 210Arbitration 213The WTO system in context 215
10 The United Nations 219The machinery of the Organization 219The Security Council and General Assembly in action 221The role of the Secretary-General 225The political organs and the International Court 231Peace-keeping operations 236Action under Chapter VII 242Are decisions of the political organs open to legal challenge? 247The effectiveness of the United Nations 250
11 Regional organisations 257The range of regional organisations 257The role of regional organisations in disputes 264Limitations of regional organisations 271Regional organisations and adjudication 274Regional organisations and the United Nations 279
12 Trends and prospects 284Dispute settlement today 284A political perspective 286A legal perspective 290Improving the capacity of political methods 295Improving the capacity of legal methods 301Conclusion 308
Appendices 310A. Agreement between Argentina and the United Kingdom
establishing an Interim Reciprocal Information andConsultation System, 1990 310
B. Report of the Commission of Inquiry into the Red CrusaderIncident, 1962 (extract) 312
C. Conciliation Commission on the Continental Shelf Areabetween Iceland and Jan Mayen, May 1981 314
D. Arbitration Agreement between the United Kingdom andFrance, July 1975 315
E. Special Agreement for Submission to the International Court ofJustice of the Differences Between the Republic of Hungary andthe Slovak Republic Concerning the Gabcikovo-NagymarosProject (1993) 319
F. Optional Clause Declarations (Peru, Djibouti, Japan, Germany) 322
Since the fourth edition of this book was published in 2005 there havebeen several developments with a direct bearing on its subject. A newadministration in the United States, the growing influence of China in theworld and political developments in Africa and Europe all have a significantimpact on the activity of both the United Nations and regional organisations.The World Trade Organization, already an established player in 2005, hasmaintained its prominence, and its arrangements for dispute settlementcontinue to be widely used. The complex system set up by the 1982 Law ofthe Sea Convention has been slowly consolidated as cases have been taken tothe International Tribunal for the Law of the Sea or to arbitration, while theInternational Court of Justice is busier now than at any previous time in itshistory. It must, of course, also be noted that solutions to such long-standinginternational problems as Cyprus, Kashmir and Israel/Palestine seem asfar away as ever, reminding us, yet again, of the distance to be travelled,if institutional provisions for dealing with the most serious disputes andsituations are to be effective.
The aim of this new edition is to examine the techniques and institu-tions available to states for the peaceful settlement of disputes, taking fullaccount of recent developments. Chapters 1 to 4 examine the so-called‘diplomatic’ means of settlement: negotiation, where matters are entirely inthe hands of the parties, then mediation, inquiry and conciliation, in eachof which outside assistance is utilised. Chapters 5 to 7 deal with legal means,namely, arbitration and judicial settlement through the International Courtof Justice, where the object is to provide a legally binding decision. Tounderline the interaction of legal and diplomatic means and to show howthey are used in specific contexts, Chapter 8 reviews the arrangements fordispute settlement in the Law of the Sea Convention and Chapter 9 consid-ers the provisions of the World Trade Organization’s remarkable DisputeSettlement Understanding. The final part of the book considers the role ofpolitical institutions, the United Nations (Chapter 10) and regional organ-isations (Chapter 11), while the final chapter reviews the current situationand offers some thoughts for the future.
Those familiar with the previous edition will find significant new materialin almost every chapter, including references to recent arbitrations, to thedeveloping practice of the International Tribunal for the Law of the Sea,the jurisprudence of the International Court of Justice and practice under
the WTO system, as well as new political material relating to peace-keepingand other activities of regional organisations and the UN. In discussing thevarious techniques and institutions, my object has remained to explain whatthey are, how they work and when they are used. As before, I have sought toinclude enough references to the relevant literature to enable the reader tofollow up any points of particular interest. With a similar objective I haveretained and updated the appendices setting out extracts from some of thedocuments mentioned in the text.
For permission to quote the material in the appendices I am again gratefulto the editors of the International Law Reports. My thanks are also due toJulie Prescott at the University of Sheffield for preparing the manuscript, toRaihanah Begum and Sinead Moloney at Cambridge University Press, andto my wife, Dariel, whose encouragement, as always, was invaluable.
Aerial Incident Case (1996), 161 n. 49Aerial Incident Case (2000), 120–2Air Transport Arbitrations (1983, 1975, 1978), 112Alabama Claims Case (1871/2), 86, 92, 95Aland Islands Inquiry (1921), 55Ambatielos Case (1953), 156AMINOIL Case (1982), 109–10ARAMCO Case (1958), 109Arbitral Award Case (1960), 103, 106, 115, 158, 265, 275Arbitral Award Case (1991), 104Armed Activities on the Territory of the Congo (DRC v. Rwanda) (2006),
17Armed Activities on the Territory of the Congo (DRC v. Uganda) (2005),
132, 144, 152Arrest Warrant Case (2002), 117, 146, 164 n. 55Article XXVIII Rights Case (1990), 214Asylum Case (1950), 163Avena Case
Interpretation (2009), 159Merits (2004), 117
Bank for International Settlements Case (2002/3), 108Barbados/Trinidad and Tobago Case (2006), 19 n. 35, 168 n. 4, 179Beagle Channel Award (1977), 27, 30–1, 39, 85, 91, 94, 106, 115Ben Bella Case (1958), 66, 68, 81Bering Sea Arbitration (1893), 98Bolivar Railway Company Claim (1903), 84Border and Transborder Armed Actions Case (1988), 17, 70 n. 31,
119 n. 11, 267 n. 33, 276–8BP v. Libya (1973), 96, 103, 105, 109Brazil – Tyres Case (2007), 208Brcko Arbitration (1999), 98, 111Buraimi Arbitration (1955), 105
Carthage Case (1913), 44 n. 8Case No. A/18 (Iran–US Claims Tribunal, 1984), 94CERD Case (2008), 136Certain Criminal Proceedings in France Case (2002/3), 118 n. 8Chaco Inquiry (1929), 61, 65, 67–8, 81, 266Chaisiri Reefer 2 Case (2001), 189Channel Arbitration (1977/8), 86–7, 93–4, 100–1, 103, 111, 158, 315–19China – Intellectual Property Case (2009), 205Chorzow Factory Case (1927/8), 53Clipperton Island Case (1931), 84Construction of a Wall Advisory Opinion (2004), 134–5, 136 n. 37,
155 n. 33Copper Case (1987), 200Corfu Channel Case
Merits (1949), 144, 224Denmark v. Turkey (2000), 71Denmark, France, the Netherlands, Norway and Sweden v. Turkey
(1985), 71 n. 37Diplomatic Staff in Tehran Case (1980), 19, 153–4, 156, 160–1, 232–5, 288,
294Dogger Bank Inquiry (1905), 42–6, 48, 54, 57Dubai/Sharjah Boundary Arbitration (1981), 89 n. 25, 90 n. 27East African Community Case (1981), 64–70, 81–2East Timor Case (1995), 123EC – Bananas Case (1997), 209EC – Biotech Case (2006), 205EC – Hormones Case (1998), 209, 213ELSI (Elettronica Sicula SpA) Case (1989), 139–40Eritrea–Ethiopia Boundary Commission Case (2002), 94–5, 101, 265Eritrea–Ethiopia Claims Commission Cases (2003–9), 111, 265Eritrea/Yemen Arbitration (1998/9), 86, 91, 93, 95, 99, 105, 111Eurotunnel Case (2007), 108Expenses Case (1962), 249 n. 80Fisheries Jurisdiction Case (1998), 121Fisheries Jurisdiction Cases (1973/4), 23 n. 39, 26 n. 45, 119, 147, 149–51,
160, 290 n. 3Franco-Siamese Frontier Case (1947), 61–2, 65–8, 81Franco-Swiss Internment Case (1955), 63, 66, 68, 81Free Zones Arbitration (1933), 98–100Frontier Dispute Case (Benin/Niger) (2005), 139–40, 159Frontier Dispute Case (Burkina Faso/Mali)
Guyana/Suriname Case (2007), 179Haji-Bagherpour v. United States (1983), 93Haya de la Torre Case (1951), 163Heathrow Airport Arbitration (1992/3), 86, 90, 97, 112Interhandel Case (1959), 80Iran–United States Claims Tribunal
Island of Palmas Case (1928), 85Italian Property Tax Case (1956), 63, 66, 68, 81Jan Mayen Conciliation (1981), 65–7, 70, 81–2, 191, 314–15Japan – Laver Case (2006), 205Japanese Loan Cases (1955, 1960), 67–8, 81Kasikili/Sedudu Island Case (1999), 118, 148KE 007 Inquiry (1983), 55–7, 289Kosovo Case (2010), 225LaGrand Case (2001), 126 n. 31, 146Lake Lanoux Arbitration (1957), 4, 8, 9, 12, 87, 111Land and Maritime Boundary between Cameroon and Nigeria
Application to Intervene (1999), 129 n. 28Counter-Claims Order (1999), 132Merits (2002), 132, 157 n. 37Preliminary Objections (1998), 278Provisional Measures (1996), 227 n. 20Request for Interpretation (1999), 130, 131 n. 43
Land Reclamation CaseAward (2005), 4, 18, 19, 179Provisional Measures (2003), 118 n. 55
Land, Island and Maritime Frontier CaseApplication for Revision (2003), 131, 138–9Application to Intervene (1990), 129, 141 n. 75, 295Composition of Chamber (1989), 138Merits (1992), 139–40
Legality of Use of Force CasesPreliminary Objections (2004), 304Provisional Measures (1999), 125
Letelier and Moffitt Case (1992), 51–4LIAMCO Case (1977), 109 n. 75Libya–Malta Continental Shelf Case
Application to Intervene (1984), 128–9Merits (1985), 130 n. 39, 141, 157, 228
Ligitan and Sipadan CaseApplication to Intervene (2001), 129 n. 28, 130
Manouba Case (1913), 44 n. 8Maritime Delimitation and Territorial Questions Case (Qatar and Bahrain)
Judgment (2001), 143Jurisdiction and Admissibility (1994), 16, 120
Maritime Delimitation Case (Guinea and Guinea-Bissau) (1985), 86–7, 90,97 n. 45, 102
Maritime Delimitation Case (Guinea-Bissau and Senegal) (1989), 86,104
Maritime Delimitation Case (1995), 161 n. 49Maritime Delimitation in the Black Sea Case (2009), 136, 151 n. 27Mexico – Taxes Case (2006), 210Military and Paramilitary Activities in and against Nicaragua Case, see
Nicaragua CaseMinquiers and Ecrehos Case (1953), 157Monetary Gold Arbitration (1953), 85Monetary Gold Case (1954), 123, 295Mosul Inquiry (1925), 55MOX Plant Case
Provisional Measures (2001/3), 18, 179, 188 n. 55, 306 n. 39Suspension of Proceedings (2003), 113, 179, 307 n. 42Termination of Proceedings (2008), 179
North Atlantic Coast Fisheries Arbitration (1910), 98North Sea Continental Shelf Cases (1969), 26 n. 44, 151, 156–7Northern Cameroons Case (1963), 11, 163Norwegian Loans Case (1957), 120Nuclear Tests Cases (1974), 164Nuclear Tests II Case (1995), 164Nuclear Weapons Advisory Opinion (1996), 133, 225Oil Platforms Case
Counter-Claims Order (1998), 132Judgment (2003), 132, 143Preliminary Objection (1996), 120
OSPAR (Article 9) Arbitration (2003), 86, 95, 104, 112, 179 n. 32, 306 n. 40Palena Case (1966), 85, 111Passage through the Great Belt Case (1991), 127, 161 n. 49Peace Treaties Case (1950), 88–9, 103, 133, 224Phosphate Lands in Nauru Case (1992), 123, 161 n. 49Pulp Mills on the River Uruguay Case
Qatar/Bahrain Case, see Maritime Delimitation and Territorial QuestionsCase (Qatar and Bahrain)
Rainbow Warrior Case (1986), 85–91, 99–101, 114, 228–9, 330–4Rainbow Warrior II Case (1990), 102Rann of Kutch Arbitration (1968), 37–8, 88, 94, 96, 111Red Crusader Inquiry (1962), 48–54, 181, 312–14Reparation for Injuries Case (1949), 223 n. 7Rhine Chlorides Case (2004), 112Right of Passage Case (1957), 119Roula Case (1956), 81Saghi v. Iran (1993), 94 n. 36Saint Pierre and Miquelon Case (1992), 93, 111Sapphire Case (1963), 109South West Africa Cases (1962), 10, 17Southern Bluefin Tuna Case
Jurisdiction and Admissibility (2000), 113, 169 n. 6, 178, 306Provisional Measures (1999), 18, 188 n. 55
Sovereignty over Pedra Branca Case (2008), 118Swordfish Case (2000), 178, 188, 306 n. 41Taba Arbitration (1988), 70, 86, 92, 94, 101, 111Tavignano Inquiry (1912), 44–6, 48, 54
Application to Intervene (1981), 127–8Judgment (1982), 92 n. 31, 140, 149, 151, 157, 159Revision and Interpretation (1985), 130–1
UNESCO–France Arbitration (2003), 307 n. 44United Nations Headquarters Agreement Case (1988), 156United States v. Iran (2000), 114 n. 93US – Continued Suspension Case (2008), 209US – Gambling Case (2005), 208US– Shrimp Case (1998), 209US– Stainless Steel (Mexico) Case (2008), 209US – Upland Cotton (Article 21.5) Case (2008), 209Venezuela–British Guiana Boundary Case (1899), 105, 115Vitianu Case (1949), 81Volga Case (2002), 188 n. 54Western Sahara Case (1975), 133, 137, 145, 163, 224Wet Salted Cod Case (1988), 200WHO Regional Headquarters Case (1980), 133, 156 n. 35Youmans Claim (1926), 84Young Loan Arbitration (1980), 112 n. 84
1794 Jay Treaty, 841814 Treaty of Ghent, 841866 Treaties of Bayonne, 81872 Arbitration Agreement concerning Claims to Delagoa Bay, 981894 Gamez-Bonilla Treaty, 1031899 Hague Convention for the Pacific Settlement of International
Disputes, 41–4, 85, 901902 General Treaty of Arbitration (Argentina–Chile), 841904 Declaration of St Petersburg, 43 n. 41907 Arbitration Agreement (Colombia–Ecuador), 98
Hague Convention for the Pacific Settlement of InternationalDisputes, 44–8, 50, 53–4, 57, 90
1911 Taft (Knox) Treaties of Arbitration, 47–81913–40 Bryan Treaties, 48, 51, 60, 661914 Bryan–Suarez Mujica Treaty (Chile–United States), 52–31915 ABC Treaty, 481919 Covenant of the League of Nations, 2791919 Mandate for South West Africa, 10, 11
Treaty of Conciliation (Brazil–Great Britain), 48Treaty of Conciliation (Chile–Great Britain), 48
1920 Treaty of Conciliation (Chile–Sweden), 581921 Treaty of Arbitration and Conciliation
1946 Trusteeship Agreement for the Cameroons, 111947 General Agreement on Tariffs and Trade, 211–35
Inter-American Treaty of Reciprocal Assistance (Rio Treaty),259–60, 269Treaty of Peace with Italy, 63Treaties of Peace with Bulgaria, Hungary and Rumania, 88United Nations Headquarters Agreement, 156 n. 35
1948 American Treaty on Pacific Settlement (Pact of Bogota), 70, 89,117, 119, 260, 275–8Charter of Bogota, 260Genocide Convention, 120, 125, 304
1949 Revised General Act for the Pacific Settlement of InternationalDisputes, 60
1950 European Convention on Human Rights, 71, 171, 2581953 Agreement on German External Debts, 1121956 Treaty of Friendship, Commerce and Navigation (United
States–Nicaragua), 1201957 Washington Agreement (Honduras–Nicaragua), 265
European Convention for the Peaceful Settlement of Disputes,70, 89, 117
Kingdom–Iceland), 12, 14, 23Exchange of Notes concerning the Red Crusader Incident(United Kingdom–Denmark), 49
1963 Charter of the Organization of African Unity, 70Vienna Convention on Consular Relations, 117, 146
1964 Protocol of the Commission of Mediation, Conciliation andArbitration of the OAU, 70, 261
1965 Treaty of Conciliation, Judicial Settlement and Arbitration(United Kingdom–Switzerland), 68Convention on the Settlement of Investment Disputes betweenStates and Nationals of Other States, 108–9Convention on Transit Trade of Land-Locked Countries, 18International Convention on the Elimination of All Forms ofRacial Discrimination, 71 n. 35, 136 n. 59
1966 Concession Agreement between BP and Libya, 96International Covenant on Civil and Political Rights, 71 n. 35UN Covenants on Human Rights, 77 n. 57
1969 American Convention on Human Rights, 71Vienna Convention on the Law of Treaties, 72, 175
1971 Agreement for Arbitration of the Beagle Channel Dispute, 91,94Montreal Convention for the Suppression of Unlawful Actsagainst the Safety of Civil Aviation, 17
1972 Charter of the Islamic Conference, 2631975 Algiers Accord (Iran–Iraq), 36, 39
Arbitration Agreement concerning Delimitation of theContinental Shelf (United Kingdom–France), 315–19Brussels Communique (Greece–Turkey), 15, 16Convention on the Representation of States in theirRelations with International Organizations of a UniversalCharacter, 72 n. 3, 175 n. 21Helsinki Agreement, 75, 77Statute of the River Uruguay, 6, 126
1976 Special Agreement concerning Delimitation of the ContinentalShelf (Libya–Malta), 157
1977 Air Services Agreement, ‘Bermuda II’ (United Kingdom–UnitedStates), 90, 97
Special Agreement concerning Delimitation of the ContinentalShelf (Tunisia–Libya), 92 n. 31, 149, 159Treaty between Czechoslovakia and Hungary concerning theConstruction and Operation of the Gabcikovo-NagymarosSystem of Locks, 146
1978 Camp David Agreements, 253Torres Strait Treaty, 12Vienna Convention on Succession of States in respect ofTreaties, 24, 72
1979 Special Agreement concerning Delimitation of the MaritimeBoundary in the Gulf of Maine Area, 21, 150, 158–9
1981 African Charter on Human and Peoples’ Rights, 71 n. 35Agreement on the Continental Shelf between Iceland and JanMayen, 65Declaration of Algeria concerning the Settlement of Claims bythe United States and Iran, 87, 94, 96Treaty Establishing the Organization of Eastern CaribbeanStates, 70
1984 Treaty of Peace and Friendship (Argentina–Chile), 35 n. 19Agreement concerning the Assets of the East AfricanCommunity, 64–9
1985 Protocol of Cartagena de Indias, 261 n. 11Vienna Convention for the Protection of the Ozone Layer, 73
1986 Agreement to Arbitrate the Boundary Dispute concerning theTaba Beachfront, 70, 92, 101Single European Act, 258
1987 Esquipulas II Accord, 268Montreal Protocol to the Vienna Convention for the Protectionof the Ozone Layer, 78–9
1990 Agreement establishing an Interim Reciprocal Information andConsultation System (Argentina–United Kingdom), 5, 310–12Agreement to Settle Dispute concerning Compensation for theDeaths of Letelier and Moffitt (Chile–United States), 52
1991 Treaty Establishing the African Economic Community, 2621992 Convention for the Protection of the Marine Environment of
the North-East Atlantic (OSPAR Convention), 95, 112Convention on Biological Diversity, 73, 113 n. 88Convention on the Protection and Use of TransboundaryWatercourses and Lakes, 113 n. 88Convention on the Transboundary Effects of IndustrialAccidents, 113 n. 88Framework Convention on Climate Change, 73North American Free Trade Agreement (NAFTA), 108, 216–17Protocol of Washington, 260Stockholm Convention on Conciliation and Arbitration withinthe CSCE, 77–8, 113, 262Treaty of Maastricht, 258
1993 Commonwealth of Independent States Charter, 259 n. 4Commonwealth of Independent States Treaty on Creation ofEconomic Union, 259 n. 4
Protocol to the 1976 Convention on the Protection of the Rhineagainst Pollution by Chlorides, 112Special Agreement concerning the Gabcikovo-NagymarosProject (Hungary–Slovak Republic), 159, 319–21
1994 Agreement establishing the World Trade Organization,194–218, 306Antidumping Agreement, 209SPS Agreement, 205TRIPS Agreement, 205Agreement relating to the Implementation of Part XI of the1982 Law of the Sea Convention, 186–7Convention to Combat Desertification, 73
1995 Dayton Peace Agreement, 30, 98Joint Declaration on Cooperation over Offshore Activities inthe South West Atlantic (Argentina–United Kingdom), 13 n. 25Straddling Stocks Agreement, 192
1996 Special Agreement concerning the Kasikili/Sedudu IslandDispute (Botswana–Namibia), 148
1997 Convention on the Law of the Non-Navigational Uses ofInternational Watercourses, 73–4Kyoto Protocol, 79Treaty of Amsterdam, 258
1998 Aarhus Convention, 791999 International Convention for the Suppression of the Financing
of International Terrorism, 1122000 Cartagena Protocol on Biosafety, 792001 Constitutive Act of the African Union, 257, 2622002 Special Agreement concerning a Boundary Dispute
(Benin–Niger), 1592006 Southern Indian Ocean Fisheries Agreement, 1922008 Protocol on the Statute of the African Court of Justice and
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