Transforming World Trade and Investment Law for Sustainable Development explains why the 2030 UN Sustainable Development Agenda for "Transforming our World"--aimed at realizing universal human rights and the17 agreed sustainable development goals (SDGs)--requires transforming the UN and WTO legal systems, as well as international investment law and adjudication. UN and WTO law protect regulatory competition between diverse neo-liberal, state-capitalist, European ordo-liberal, and developing countries' conceptions of multilevel trade and investment regulation. However, geopolitical rivalries and trade wars increasingly undermine transnational rule of law and effective regulation of market failures, governance, and constitutional failures. Protecting the WTO legal and dispute settlement system remains essential for SDGs such as climate change mitigation measures and access to medical supplies and vaccines in global health pandemics. Investment law and adjudication must better reconcile governmental duties to protect human rights and decarbonize economies with the property rights of foreign investors. The constitutional, human rights, and environmental litigation in Europe enhances the legal accountability of democratic governments for protecting sustainable development. However, European economic constitutionalism has been rejected by neoliberalism, China's authoritarian state-capitalism, and many developing countries' governments. The more that regional economic orders (like the China-led Belt and Road networks) reveal heterogeneity and power politics block UN and WTO reforms, the more the US-led neoliberal world order risks disintegrating. UN and WTO law must promote private-public network governance and civil society participation in order to stabilize and de-politicize multilevel governance that protects SDGs and global public goods.
This is the first legal monograph analysing multilevel governance of global 'aggregate public goods' (PGs) from the perspective of democractic, republican and cosmopolitan constitutionalism by using historical, legal, political and economic methods. It explains the need for a 'new philosophy of international law' in order to protect human rights and PGs more effectively and more legitimately. 'Constitutional approaches' are justified by the universal recognition of human rights and by the need to protect 'human rights', 'rule of law', 'democracy' and other 'principles of justice' that are used in national, regional and UN legal systems as indeterminate legal concepts. The study describes and criticizes the legal methodology problems of 'disconnected' governance in UN, GATT and WTO institutions as well as in certain areas of the external relations of the EU (like transatlantic free trade agreements). Based on 40 years of practical experiences of the author in German, European, UN, GATT and WTO governance institutions and of simultaneous academic teaching, this study develops five propositions for constituting, limiting, regulating and justifying multilevel governance for the benefit of citizens and their constitutional rights as 'constituent powers', 'democratic principals' and main 'republican actors', who must hold multilevel governance institutions and their limited 'constituted powers' legally, democratically and judicially more accountable.
The state-centred 'Westphalian model' of international law has failed to protect human rights and other international public goods effectively. Most international trade, financial and environmental agreements do not even refer to human rights, consumer welfare, democratic citizen participation and transnational rule of law for the benefit of citizens. This book argues that these 'multilevel governance failures' are largely due to inadequate regulation of the 'collective action problems' in the supply of international public goods, such as inadequate legal, judicial and democratic accountability of governments vis-a-vis citizens. Rather than treating citizens as mere objects of intergovernmental economic and environmental regulation and leaving multilevel governance of international public goods to discretionary 'foreign policy', human rights and constitutional democracy call for 'civilizing' and 'constitutionalizing' international economic and environmental cooperation by stronger legal and judicial protection of citizens and their constitutional rights in international economic law. Moreover intergovernmental regulation of transnational cooperation among citizens must be justified by 'principles of justice' and 'multilevel constitutional restraints' protecting rights of citizens and their 'public reason'. The reality of 'constitutional pluralism' requires respecting legitimately diverse conceptions of human rights and democratic constitutionalism. The obvious failures in the governance of interrelated trading, financial and environmental systems must be restrained by cosmopolitan, constitutional conceptions of international law protecting the transnational rule of law and participatory democracy for the benefit of citizens.
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