Economic Sanctions and International Law

301 Pages·2016·1.827 MB·English

by  Matthew Happold (editor), Paul Eden (editor)

ECONOMIC SANCTIONS AND
INTERNATIONAL LAW
In recent years sanctions have become an increasingly popular tool of
foreign policy, not only at the multilateral level (at the UN), but also region-
ally (the EU in particular) and unilaterally. The nature of the measures
imposed has also changed: from comprehensive sanctions regimes (dis-
credited since Iraq in the 1990s) to ‘targeted’ or ‘smart’ sanctions, directed
at specific individuals or entities (through asset freezes and travel bans)
or prohibiting particular activities (arms embargoes and export prohibi-
tions). Bringing together scholars, government and private p ractitioners,
Economic Sanctions and International Law provides an overview of recent
developments and an analysis of the problems that they have engendered.
Chapters examine the contemporary practice of the various actors, and
the legality (or otherwise) of their activities. Issues considered include
the human rights of persons targeted, and the mechanisms established
to challenge their listing; as well as, in cases of sanctions imposed by
regional organisations and individual states, the rights of third States and
their nationals. The book will be of interest to scholars and practitioners of
international law and politics.
Volume 62 in the series Studies in International Law
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Economic Sanctions and
International Law
Edited by
Matthew Happold and Paul Eden
OXFORD AND PORTLAND, OREGON
2016
Hart Publishing
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First published 2016
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All Eur-lex materials used in the work is © European Union,
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British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
ISBN: HB: 978-1-84946-590-8
ePDF: 978-1-78225-472-0
ePub: 978-1-78225-473-7
Library of Congress Cataloging-in-Publication Data
Names: Happold, Matthew. | Eden, Paul, 1964–
Title: Economic sanctions and international law / edited by Matthew Happold and Paul Eden.
Description: Oxford ; Portland, Oregon : Hart Publishing, 2016. | Series: Studies in
international law | Includes bibliographical references and index.
Identifiers: LCCN 2016020805 (print) | LCCN 2016021061 (ebook) | ISBN 9781849465908
(hardback : alk. paper) | ISBN 9781782254737 (Epub)
Subjects: LCSH: Economic sanctions. | Sanctions (International law)
Classification: LCC KZ6373 .E265 2016 (print) | LCC KZ6373 (ebook) | DDC 341.5/82—dc23
LC record available at https://lccn.loc.gov/2016020805
Series: Studies in International Law, volume 62
Typeset by Compuscript Ltd, Shannon
Contents
List of Contributors .............................................................................................xi
Table of Cases .....................................................................................................xiii
Tables of Materials .............................................................................................xxi
1. Economic Sanctions and International Law:
An Introduction ..........................................................................................1
Matthew Happold
2. Sanctions and Fundamental Rights of States:
The Case of EU Sanctions Against Iran and Syria .............................13
Alexander Orakhelashvili
I. Introduction ......................................................................................13
II. The Essence of the Fundamental Rights Doctrine .......................14
A. Doctrinal Aspects .....................................................................14
B. Development in Practice .........................................................16
III. The Scope of the UN and EU Sanctions against
Iran and Syria ...................................................................................20
IV. The Interaction between Sanctions,
their Authority and the Fundamental
Rights of States .................................................................................24
V. Legal Basis of EU Sanctions and Collective
Security Frameworks .......................................................................30
A. Chapter VIII of the UN Charter .............................................30
B. EU Treaties ................................................................................33
C. Legal Basis Under General International Law ....................34
VI. Conclusion ........................................................................................36
3. Unilateral European Sanctions as Countermeasures:
The Case of the EU Measures Against Iran.........................................37
Pierre-Emmanuel Dupont
I. Introduction ......................................................................................37
II. The Legal Nature of the EU Measures ..........................................40
A. Retorsion ...................................................................................41
B. Sanctions ...................................................................................47
C. Countermeasures .....................................................................51
III. EU Sanctions and the Legal Regime of
Countermeasures .............................................................................53
A. Procedural Conditions ............................................................54
vi Contents
B. Substantial Conditions ............................................................55
i. The Existence of the Wrongful Act ...............................56
ii. The ‘Injured State’ Issue .................................................58
iii. The Requirement of Proportionality.............................60
iv. The Availability of Countermeasures in
Situations of Action Taken pursuant to
Chapter VII by the UN Security Council .....................61
IV. Conclusion ........................................................................................63
4. State Reactions to Illegal Sanctions ......................................................67
Antonios Tzanakopoulos
I. Introduction ......................................................................................67
II. On Various ‘Sanctions’ ....................................................................67
III. Reactions to Illegal Unilateral Sanctions ......................................69
A. Countermeasures .....................................................................69
B. ‘Lawful’ Measures by States ‘Other than
the Injured State’: Countermeasures in
the General Interest .................................................................72
IV. Reactions to Illegal Collective Sanctions ......................................73
A. Unlawful Sanctions .................................................................74
B. Reaction: Disobedience as a Countermeasure .....................80
V. Conclusion ........................................................................................85
5. Targeted Sanctions and Human Rights................................................87
Matthew Happold
I. Introduction ......................................................................................87
II. The Development of Targeted Sanctions ......................................88
III. Targeted Sanctions Today ...............................................................90
IV. Targeted Sanctions and Substantive Human Rights ...................92
V. Targeted Sanctions and Procedural Human Rights ....................99
VI. Conclusion ......................................................................................109
6. UN Smart Sanctions and the UN Declaration
on the Rule of Law .................................................................................113
Clemens A Feinäugle
I. Introduction ....................................................................................113
II. The Rule of Law within the United Nations ..............................114
A. Debate over the Concept of the Rule of
Law within the UN ................................................................115
B. Identifying the Content of the Rule of
Law at the International Level .............................................118
i. The Discussion on the Contents of
the Rule of Law ..............................................................118
ii. The Rule of Law Applicable to the
UN as Provided in the Declaration .............................120
Contents vii
III. UN Smart Sanctions and the Rule of Law ...............................124
A. Intra-regime Perspective ....................................................125
i. Advanced Smart Sanctions Regimes .......................125
ii. Medium-developed Sanctions Regimes ..................128
iii. Less-developed Sanctions Regimes .........................130
B. Inter-regime Perspective ....................................................131
IV. Conclusion ....................................................................................133
7. United Nations Targeted Sanctions, Human Rights
and the Office of the Ombudsperson .................................................135
Paul Eden
I. Introduction .................................................................................135
II. Targeted Sanctions against the Taliban
and Al-Qaida ................................................................................136
III. The Effect of 9/11 on Targeted Sanctions.................................137
IV. Criticism of the United Nations Asset
Freezing Regime ..........................................................................138
V. The Kadi I Case .............................................................................139
A. Introduction .........................................................................139
B. The 2005 Court of First Instance
Judgment (Kadi I (CFI)) ......................................................139
C. The 2008 Grand Chamber Judgment
(Kadi I) ...................................................................................142
VI. The Evolution of the Office of the Ombudsperson ................145
A. Introduction .........................................................................145
B. The Focal Point for De-Listing and
Related Developments .......................................................146
VII. The Office of the Ombudsperson ..............................................148
A. Introduction .........................................................................148
B. The Road to UNSC Resolutions 1988
and 1989 (2011) ....................................................................150
C. UNSC Resolutions 1988 and 1989 (2011) .........................152
i. Introduction .................................................................152
ii. UNSC Resolution 1989 (2011) ...................................153
D. Assessing UNSC Resolutions 1988
and 1989 (2011) ....................................................................154
VIII. The Kadi II Case ...........................................................................156
A. Introduction .........................................................................156
B. The 2010 General Court’s Judgment
(Kadi II (GC)) ........................................................................157
C. The 2013 Grand Chamber’s Judgment
(Kadi II) .................................................................................159
D. Conclusion ...........................................................................160
viii Contents
IX. The Office of the Ombudsperson post Kadi II ����������������������������161
A. UNSC Resolution 2083 (2012) ..............................................161
B. UNSC Resolution 2161 (2014) ..............................................164
C. The Independence of the Office of
the Ombudsperson ................................................................165
D. The Reform Proposals of the
Like-Minded States ................................................................167
X. Conclusion ......................................................................................168
XI. Postscript .........................................................................................168
8. Sanctions Cases in the European Courts ...........................................171
Luca Pantaleo
I. Introduction ....................................................................................171
II. Setting the Scene: from PMOI to Kadi I ���������������������������������������173
A. Statement of Reasons ............................................................175
B. Obligation to Provide Evidence ...........................................175
C. Right to be Heard and to an
Adversarial Procedure ..........................................................176
D. Comprehensive Judicial Review .........................................176
III. The Application of Kadi Standards to
Bilateral Sanctions Regimes and other
Post-Kadi Developments ...............................................................177
IV. Open Questions and Remaining Challenges .............................184
V. Conclusions .....................................................................................194
9. United States Sanctions: Delisting Applications,
Judicial Review and Secret Evidence .................................................197
Rachel Barnes
I. Introduction ....................................................................................197
II. OFAC Sanctions—a Model of Economic Warfare .....................199
III. Challenging a US Sanctions Listing ............................................202
A. Procedural Protections ..........................................................202
B. Administrative Reconsideration of
a Listing Decision—the Statutory Scheme .........................204
C. Administrative Reconsideration—Additional
Due Process Requirements of the US Constitution ..........206
i. Disclosure of Non-Classified Portions of the
Administrative Record .................................................207
ii. Statement of Reasons ....................................................208
D. Judicial Review ......................................................................209
i. Standard of Review .......................................................209
ii. Review is Limited to the
Administrative Record .................................................211
iii. US Courts’ Approaches to their
Limited Review Function .............................................212
Contents ix
iv. Treatment of Classified Material in the US ..............214
v. Treatment of Classified Material:
Comparisons with the UK and the EU .....................218
vi. US Remedies for Due Process Violations:
‘Harmless Error’ Analysis and Remission
for Further Administrative Consideration ..............222
IV. Some Concluding Remarks about the US OFAC
Regime and Challenges to Listing Decisions ...........................223
10. Sanctions and Commercial Law ........................................................227
Penelope Nevill
I. Introduction ..................................................................................227
II. History and Background .............................................................228
III. The Modern Legal Framework ..................................................234
A. UN Sanctions and Unilateral Sanctions ...........................234
B. Implementation into EU and Domestic Law ...................236
C. Content of Sanctions—Bans and Limits
on Commercial Activity ......................................................238
D. Prohibitions on Standing and Enforcement .....................240
E. Scope of Application of Sanctions .....................................242
F. Common Approach across Sanctions Legislation ...........242
IV. Sanctions, Contracts and Commercial Relations .....................243
A. Illegality and Frustration as Applied to Sanctions .........244
B. Standard Form Contract Provisions and
their Construction ................................................................247
C. Lack of Clarity in Sanctions
Measures—Implications for Contracts .............................250
D. The Freezing Effect on Economic Relations .....................252
V. Conclusion ....................................................................................253
Index .................................................................................................................255