Focus: International Economic Law

• Vajda, Christopher 1

Abstract

Dispute resolution mechanisms form key parts of international economic agreements, but they differ considerably. This article reviews the dispute resolution mechanisms in the association agreement the European Union (EU) has with Turkey, those in the European Economic Area Agreement and those in some of the agreements that Switzerland has with the EU. It then turns to the World Trade Organization and the International Convention on the Settlement of Investment Disputes as further points of comparison. It then draws the threads together and concludes that a key element in choosing an appropriate dispute resolution body for a given international economic agreement is the question of direct effect, with some agreements providing for more limited scope for direct enforcement. This conclusion is then examined in light of the Comprehensive Economic and Trade Agreement between the EU and Canada before turning to some of the perceived flaws in the dispute resolution body in this Agreement. A conclusion is then offered on the importance and function of dispute resolution mechanisms in international economic agreements.

• 1Court of Justice of the European Union