Economic Organizations and Groups, International

International economic law is an area dominated by international agreements since very little international customary law concerning economic relations has developed so far. Most of these agreements have either created international economic organizations or are anyway ascribable to the functioning of an international economic organization. Especially in the period following World War II it became indeed clear that the mere laying down, once and for all, of rules in a treaty would hardly work in the field of international economic relations, since the treaty in question would be generally inadequate to face all actual problems that are sought to be solved or that might arise in the future. International economic organizations, which are legal persons of international law not dependent on the will of any of the Member States , are precisely conferred the task to ensure the continuous adaptation of rules to new economic contexts and their effective implementation. It is commonly agreed that, in general, worldwide economic organizations have substantially performed their main functions, contributing significantly to the world economic growth through liberalization of trade and currency, thus speeding the economic interdependency of States. For example, the eight GATT rounds of multilateral trade negotiations (eg Uruguay Round) have been very successful in reducing customs duties: over 47 years—from 1947 to 1994, when the GATT was replaced by the WTO—the average duty on industrial products imposed by developed countries has impressively decreased from about 40% ad valorem to 3.9% ad valorem. The relatively recent phenomenon of proliferation of RTAs, and of regional economic organizations created by them, has raised serious concerns among the supporters of a multilateral (in the sense of universal or global) approach to international economic co-operation. It is argued that RTAs, being preferential in nature, have actually eroded the principle of non-discrimination so deeply that the point has almost been reached when the most-favoured-nation standard is the exceptional treatment, and the survival of the WTO, which is based on that standard, might hang in the balance. In principle, the formation and further implementation of RTAs is regulated by the WTO itself which provides substantive and procedural requirements that the regional economic entities have to comply with (see Art. XXIV GATT (1994), Art. V GATS and para. 2 (c) 1979 GATT Enabling Clause). In practice, however, the WTO requirements relating to RTAs are largely disregarded, and the WTO has not been so far able or legally equipped to ensure systematically their enforcement. International political economy literature has evidenced that there can be different driving reasons, not only economic but also political, behind the dynamism in concluding RTAs in recent times. According to this literature, States will enter into RTAs because they fear to be marginalized, that is being left out, from key international political or economic developments, or as a way to enhance economic co-operation which will, in turn, promote political stability and peace in the region, or in order to react to security threats such as environmental damage, illegal migration, and international terrorism, or as a means to increase their bargaining power in international negotiations or as an attempt to lock-in domestic liberalizing reforms or simply because RTAs are easier and quicker to negotiate. Hence, it could be argued that RTAs benefit States with an opportunity for broader and deeper integration than is otherwise possible with all connected political and economic advantages. Furthermore, RTAs sometimes provide the most appropriate forum for a new generation of trade policies, being sensitive to issues, such as human rights, health, and environment, which are more controversial at a worldwide level. Indeed, nowadays international economic organizations and groups are facing new challenges which are not only economical in nature, such as protection of the environment and achievement of sustainable development. It is likely that in a near future the vitality and credibility of economic organizations and groups will be measured also on the basis of their ability to confront themselves appropriately with these crucial challenges today.