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Journal of International Economic Law Advance Access published online on September 12, 2007
Journal of International Economic Law, doi:10.1093/jiel/jgm032
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© Oxford University Press 2007, all rights reserved

No More Negotiated Deals?: Settlement of Trade and Investment Disputes in East Asia

Junji Nakagawa*

* Professor of International Economic Law, Institute of Social Science, University of Tokyo. 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033 Japan, E-mail: nakagawa{at}iss.u-tokyo.ac.jp.


  Abstract

Many argue that East Asian countries have come to adopt ‘aggressive legalism’ in trade and investment policy, in the sense that they have come to settle their trade and investment disputes through the dispute settlement mechanism (DSM) of the WTO and the other third-party procedures. Scrutiny of the dispute cases of these countries shows, however, that East Asian legalism is not so aggressive, that it varies country by country, and that there still exists room for negotiated deals in settling trade and investment disputes among them. On the other hand, the recent move toward regional integration through free trade agreements (FTAs), economic partnership agreements (EPAs), and bilateral investment treaties (BITs) in East Asia may lead to the adoption of a more aggressive legalism in the region, in particular in settling investment disputes, disputes relating to intellectual property rights, and trade remedies.

The earlier version of this article was presented at the 2007 Annual Conference of the International Studies Association (Chicago) in February 2007. Special thanks go to Saadia Pekkanen for inviting me to the panel on ‘The Legalism in East Asia’. Thanks also go to those who kindly commented on the earlier drafts, in particular, Joel P. Trachtman, Tomer Broude, Marcia Harpaz, Shun Kaku, Armand de Mestral, Aya Iino, Tomohiko Kobayashi, Kazuyori Ito, Meredith Lewis, and Yongshik Lee.


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