INTERNATIONAL ECONOMIC LAW AND THE ENVIRONMENT

INTERNATIONAL ECONOMIC LAW AND THE ENVIRONMENT

Fulvio Maria Palombino

Instructional goals

The course aims to give students an understanding of the nature, structure, and functions of international institutions that govern international trade and foreign investment, as well as how these institutions interact with environmental needs.

Intended learning outcomes

Knowledge and understanding: Students will develop a solid understanding of the norms governing international trade and investment law, as well as the rules concerning the interaction between environmental protection and international economic law. This knowledge will be gained through lectures, seminars, conventions, and conferences involving academics and professionals from key sectors of interest. Applying knowledge and understanding: students will be able to use the knowledge gained at a theoretical level to analyze current events and real cases. These skills will be developed through the study for the final exam, individual and group exercises, as well as through the interaction with colleagues during case discussions. Making judgements: students will acquire the necessary tools to understand and analyze – from a legal perspective and starting with the fundamentals of international economic law – topical phenomena of global scope. Students will also develop the ability to analyze and apply critical reasoning to problems and case studies, properly applying the relevant legal framework and judicial practice to the cases examined. Communication skills: students will develop the ability to construct, analyze, and communicate their point of view and the results of their analysis. This will be achieved through the study of materials and decisions of international bodies, as well as discussion of fictitious cases designed to help students enhance their critical thinking skills. Communication skills will also be assessed through the final exam. Learning skills: students, having gained a solid understanding of international economic law and environmental protection, will have the essential foundation to connect with international law firms, multinational companies, international institutions and organizations, and NGOs related to the areas of international trade and investment.

Course Contents

The course provides insights into the nature, structure, and functions of international institutions and actors in the field of international economic law. It particularly focuses on two main areas: international trade law and international investment law. For the former, the course delves deeply into the World Trade Organization, examining its structure, functioning, key agreements, and dispute settlement mechanism. Regarding international investment law, the course explores its structure, the most important standards for the protection of foreign investments, and the dispute settlement methods for disputes between States and foreign investors, with a special emphasis on international investment arbitration. Along with foundational concepts of international economic law, the course also addresses the impact that the sector of international trade law and international investment law may have on the environment, analyzing how environmental concerns are either integrated or sometimes overlooked within these fields.

Reference Books

F.M. Palombino (ed.), Introduction to International Economic Law, Routledge-Giappichelli, 2025.

Teaching Methods

Lectures, discussion of case studies, seminars held by Italian and foreign experts.

Assessment Method

The midterm will account for 30% of the final grade. The remaining 70% will be assessed through the final exam, which consists of an oral test where students must demonstrate their knowledge and understanding of the concepts and principles of international economic law and its interaction with environmental protection, as well as their ability to apply these to practical cases. Students are expected to use appropriate technical and legal vocabulary, proving they have acquired the study methods and learning skills necessary for further independent study of the subject. The final grade is expressed in thirtieths. An insufficient score, below 18, will result in failure to pass the exam. Answering all questions correctly and demonstrating an excellent level of preparation will earn a score of 30, possibly cum laude/with honors. When assessing the student's preparation, the following criteria will be considered: knowledge and understanding of the core concepts and principles of the subject and their application to real cases (65%); proper use of technical and legal vocabulary (25%); and the ability to analyze and evaluate relevant sources along with the development of study methods (10%).

Thesis assignment criteria

Passing the final exam and a clear interest in researching and writing the thesis on this subject. Knowledge of the English language; knowledge of other foreign languages is also appreciated.

Week 1

Introduction to International Economic Law Lecture 1: Definition of international economic law – Subjects of international economic law Lecture 2: Sources of international economic law.

Week 2

Introduction to the World Trade Organization Lecture 1: The origins of WTO – WTO’s functions Lecture 2: The institutional structure of WTO

Week 3

The substantive discipline of international trade (I) Lecture 1: Basic principles enshrined in the GATT – Overview of the content of the GATT Lecture 2: MFN (Article I GATT) – Regional integration exception (Article XXIV GATT) – National treatment (Article III GATT)

Week 4

The substantive discipline of international trade (II) Lecture 1: General exceptions (Article XX GATT) and Security exception (Article XXI GATT). Lecture 2: In-class moot court

Week 5

Trade and the environment Lecture 1: Sustainable development and the evolution of international trade law Lecture 2: The protection of the environment in international trade law: the role of the general exceptions.

Week 6

The settlement of disputes between WTO member States and Midterm Lecture 1: The settlement of disputes between WTO member States. Lecture 2: Midterm.

Week 7

Introduction to international investment law (I) Lecture 1: Historical evolution of the international law on foreign investment – Customary rules on the protection of aliens – International minimum standard. Lecture 2: Diplomatic protection.

Week 8

Introduction to international investment law (II) Lecture 1: From customary rules on the protection of aliens to Bilateral Investment Treaties and Free Trade Agreements – Typical features of International Investment Agreements. Lecture 2: Definition of “investment”.

Week 9

The substantive law on the protection of foreign investment (I) Lecture 1: Main standards on the treatment of foreign investment – Nationalization – Expropriation. Lecture 2: MFN – NT – Umbrella clauses.

Week 10

The substantive law on the protection of foreign investment (II) Lecture 1: Fair and Equitable Treatment. Lecture 2: Fair and Equitable Treatment / in-class moot court.

Week 11

International Investment Law and the Environment Lecture 1: The protection of the environment and the Fair and Equitable Treatment standard. Lecture 2: Environmental protection as a reason for expropriation: the role of police powers.

Week 12

The settlement of investment disputes Lecture 1: International arbitration – ICSID arbitration. Lecture 2: ICSID arbitration.