The author takes a principled stand against UNCLOS overreach and makes several excellent points while doing so.
One of the key points made by the author is that the SCS dispute precedes UNCLOS (1982); thus, the parties cannot be forced to submit to mandatory arbitration under the PCA unless both parties consent.
The most interesting fact found in this article is that the Philippines also opted out of compulsory UNCLOS arbitration upon ascension to UNCLOS:
One of the key points made by the author is that the SCS dispute precedes UNCLOS (1982); thus, the parties cannot be forced to submit to mandatory arbitration under the PCA unless both parties consent.
The most interesting fact found in this article is that the Philippines also opted out of compulsory UNCLOS arbitration upon ascension to UNCLOS:
Case Study of Out-of-Control Transnational Adjudicative Body
Tribunal’s conduct serves as a case study of the dangers in delegating too much ill-defined juridical power to an unaccountable, non-democratic transnational institution
By May 23, 2016
Multilateral treaties have become a bedrock of international law, especially since the end of World War II. More than 600 multilateral treaties have been sponsored by the United Nations out of the approximately 8,000 multilateral treaties entered into since World War II. In setting out the parties’ rights and obligations, norms of behavior and dispute resolution mechanisms, carefully written treaties that have buy-in from the member countries can reduce the potential for resort to armed conflict or economic warfare. However, when a party to a multilateral treaty seeks to exploit perceived ambiguities to gain exclusive benefits beyond the intended scope of the underlying treaty, it is risking the legal and moral foundations on which multilateral treaties are based.
The compulsory arbitration provisions contained in the treaty known as the United Nations Convention on the Law of the Sea (UNCLOS) provide a case in point.
UNCLOS establishes the legal framework under which coastal states can claim, manage, and utilize their ocean resources. It defines the maritime zones subject to jurisdiction of coastal states and governs the determination of the bases for delimitation of maritime boundaries.
UNCLOS sets forth an elaborate, multi-phased compulsory dispute resolution process to address the maritime issues within its scope. It stipulates that judgments rendered by the International Tribunal for the Law of the Sea or a specially constituted arbitral tribunal (both referred to in this article as “Arbitral Tribunal”) in accordance with the Convention are final and non-appealable. The process is subject to abuse by UNCLOS parties who seek to upend normal direct channels of diplomacy and negotiations to force a resolution of territorial disputes in their favor.
This article analyzes one example of abuse of UNCLOS’s compulsory dispute resolution process and the Arbitral Tribunal’s overreaching in accepting jurisdiction of a case. The Arbitral Tribunal decided to assume jurisdiction over a maritime territorial dispute between two UNCLOS parties, the Philippines and China. The Philippines had initiated the case despite China’s objection that the subject matter of the dispute was outside of the authority of the tribunal to arbitrate. A final decision on the merits of the Philippines’ case by the Arbitral Tribunal is expected soon. Whatever the substantive outcome of the case turns out to be, most disturbing is that the Arbitral Tribunal determined it had legal authority to impose its will on a non-consenting party to a territorial dispute in the first place.
The United States is not currently a formal party to UNCLOS. Thus, it is not subject to its compulsory arbitration provisions. Joining UNCLOS has strong proponents, including President Obama, who believe that it will give the United States more moral standing to challenge actions in the South China Sea that it objects to. Even without the U.S. being an UNCLOS party, the Obama administration endorsed the Philippines’ compulsory arbitration case against China, a view shared by the New York Times in its May 21st editorial. However, U.S. foreign policymakers and opinion leaders should take heed before reflexively embracing compulsory arbitration provisions in multilateral treaties in the future. There are significant precedential implications to national sovereignty when an unaccountable international adjudicative body, which does not derive its legitimacy from the consent of the governed, is in a position to issue ultra vires decisions under the cloak of international law. The UNCLOS Arbitral Tribunal’s handling so far of the Philippines compulsory arbitration case against China should serve as a warning.
UNCLOS Dispute Resolution Procedures
The preamble of UNCLOS states that its establishment of a “legal order for the seas and oceans” must be “with due regard for the sovereignty of all States.” UNCLOS lays out a multi-pronged dispute resolution process, which it is reasonable for the parties to expect would be implemented “with due regard for the sovereignty of all States.”
Direct bilateral negotiations and consultations are listed as the first level of dispute resolution. The parties can then move to the option of non-binding conciliation. The process of conciliation involves the use of one or more neutral third parties who meet with each of the disputants separately and try to narrow the differences between them through communication of successive proposals and counter-proposals from the parties. The conciliators may also come up with their own proposed solution for consideration by the disputants.
Compulsory arbitration is the final and most extreme form of dispute resolution that an aggrieved UNCLOS party can seek to utilize against the other party to the dispute. It is to occur after other procedures have been exhausted and is subject to the right of the other party to the dispute to opt out of compulsory arbitration under specified circumstances.
Article 298 of UNCLOS explicitly gives Convention state parties the right to opt out of compulsory arbitration for disputes concerning, among other things, the interpretation or application of certain provisions of the Convention “relating to sea boundary delimitations, or those involving historic bays or titles.” (Article 298, 1 (a)(i))
UNCLOS Arbitral Tribunal Overstepped the Bounds of its Authority in not Honoring China’s Opt-Out from Compulsory Arbitration
Both China and the Philippines referenced the compulsory arbitration opt-out provisions of Article 298 when they entered into UNCLOS as Convention parties.
Nevertheless, in order to gain leverage in a dispute over territorial boundaries in the South China Sea, the Philippines unilaterally initiated compulsory arbitration proceedings in 2013 against China before the Convention’s Arbitral Tribunal. Although China acted within its rights to reject the jurisdiction of the Arbitral Tribunal, based on its exercise of its Article 298 opt-out rights, the tribunal acted like many transnational bureaucracies do in seeking to expand its authority over sovereign states. It decided to accept jurisdiction over what is essentially a territorial dispute.
When China ratified UNCLOS in 1996, it included the following declaration as part of its accession to the Convention: “The People’s Republic of China reaffirms its sovereignty over all its archipelagos and islands as listed in article 2 of the Law of the People’s Republic of China on the territorial sea and the contiguous zone, which was promulgated on 25 February 1992.”
Thus, in entering UNCLOS as a Convention party, China made clear that it was not waiving its pre-existing claims to land and maritime territorial rights, which it believed to be preserved under customary international law, within demarcated areas of the semi-enclosed waters of the South China Sea.
In 2006, China invoked Article 298 in declaring that it “does not accept any of the procedures provided for in Section 2 of Part XV of the Convention with respect to all the categories of disputes referred to in paragraph 1 (a) (b) and (c) of Article 298 of the Convention.”
For its part, the Philippines stated in its own declarations accompanying its signing and ratification of the Convention that such “signing shall not in any manner impair or prejudice the sovereignty of the Republic of the Philippines over any territory over which it exercises sovereign authority, such as the Kalayaan Islands, and the waters appurtenant thereto.” It also declared that its agreement for peaceful resolution of disputes under Article 298 of the Convention “shall not be considered as a derogation of Philippines sovereignty.”
When it served its purpose upon becoming a party to UNCLOS, the Philippines asserted its own “sovereign” claims based on alleged historic rights that it considered non-derogable. However, when it later served the Philippines’ purpose to use UNCLOS’s compulsory arbitration provisions to negate China’s sovereign claims based on its alleged historic rights, the Philippines completely reversed itself on its previously stated principles. The Philippines stated the following in its submission with the Arbitral Tribunal, contradicting its original self-serving UNCLOS accession declaration: “UNCLOS supersedes and nullifies any ‘historic rights’ that may have existed prior to the Convention.”
Under international law, the Philippines should be estopped from using UNCLOS’s compulsory dispute resolution procedures to deny China the same right to protect its sovereignty rights as the Philippines had for all intents and purposes asserted for itself when it joined UNCLOS. The Arbitral Tribunal erred when it deferred instead to the Philippines’ current turn-about of position in order to justify its acceptance of the Philippines’ case for compulsory arbitration.