Economic Disputes Resolution
Economic dispute resolution is an important component of economic integration. Countries forming an economic block have differences that emerge and must be resolved amicably for the sake of economic integration. Countries have different economic policies and some of them are usually reluctant to adopt the agreed policies of the economic block (Aidt & Tzannatos, 2002). This implies that disputes arise as some of the member countries of the economic block dispute the mode of doing business of the other member. As a result of this, economic blocks have dispute resolutions procedures enshrined in their constitution that they use to solve economic disputes (Schwartz & Sykes, 2002).
A dispute resolution mechanism is designed with its scope, jurisdiction, and enforcement mechanism clearly outlined to empower it and make it effective. Most common issues that the law designed to deal with economic disputes addresses are investment disputes, labor and environment disputes, and custom duty disputes (Aidt & Tzannatos, 2002. The law is then designed to solve disputes that may arise from any of the above or any other form of dispute that may arise between member states. Countries lodge their complaints to the body authorized to resolve economic disputes and the accused countries are allowed to defend their actions. The body then makes a judgment based on the provisions in the constitution. The body also follows up to ensure that the accused rectifies her behaviors to conform to the stipulations in the constitutions (Schwartz & Sykes, 2002).
Therefore, countries under economic integration must empower the economic disputes resolution body so that it is able to carry out its mandate. A poorly empowered body fails because most of the member countries carry out their operations contrary to the agreed conduct. This is because the body can only carry out judgment but is unable to enforce the law. All functional economic integrations in the world have very powerful economic resolutions bodies.
Aidt, T., & Tzannatos, Z. (2002). Unions and collective bargaining: economic effects in a global environment. Washington, DC: World Bank.
Schwartz, W. F., & Sykes, A. O. (2002). Economic Structure of Renegotiation and Dispute Resolution in the World Trade Organization, The. J. Legal Stud. S179, 31.