Droit international général

For anyone without a date for Valentine’s Day, we are happy to advertise the following ELI event on de-judicialisation in family and succession matters:

With competences in family and succession matters increasingly moving from courts to other authorities – such as notaries, civil status officers, child protection agencies, judicial officers, advocates, and even private parties – ELI’s Extra-Judicial Administration of Justice in Cross-Border Family and Succession Matters project aims at developing an outline of a harmonised European concept of courts, building on the approach of the Court of Justice of the EU in its recent case law, to ensure a harmonised application of EU instruments to such actors in Member States (for more information on the project, click here). As the trend of ‘de-judicialisation’ continues to grow, the project’s Dissemination Conference offers a valuable opportunity to discuss its implications and to present and reflect on recommendations developed by the ELI to address this shift.

The event will take place on 14 February 2025 from 09:00–18:00 CET at the University of Vienna (Small Ceremonial Hall (Kleiner Festsaal)) and will be streamed online.

ELI will be able to issue a certificate of attendance, when requested, to participants.

Register here. The tentative agenda is available here.

This report was written by Carlos Santaló Goris, postdoctoral researcher at the University of Luxembourg

Recent developments on the application of the EAPO Regulation

On 3 December 2024, the conference ‘European Account Preservation Order: Practical Challenges and Prospects for Reform’ took place at the University of Luxembourg, organized by Prof. Gilles Cuniberti (University of Luxembourg). The conference also served as an occasion to present the book ‘European Account Preservation Order – A Multi-jurisdictional Guide with Commentary’, published by Bruylant/Larcier. The book was co-edited by Dr. Nicolas Kyriakides (University of Nicosia), Dr. Heikki A. Huhtamäki (Huhtamäki Brothers Attorneys Ltd), and Dr. Nicholas Mouttotos (University of Bremen), and offers a comprehensive overview on the application of the European Account Preservation Order (‘EAPO’) at the national level. It contains a report for each Member State where the EAPO Regulation applies, addressing specific aspects of the EAPO procedure that depend on domestic law.

The conference was structured into two panel discussions. The first panel focused on the specific issues regarding the application of the EAPO Regulation identified by practitioners with first-hand experience with this instrument. The second panel discussion explored the potential reform of the EAPO Regulation and which specific changes should be implemented to improve its application. This report aims to offer an overview of the main highlights and outputs of the presentations and discussions of the conference.

First panel discussion: the use of the EAPO application in the practice

The first panel was composed of Dr. Laurent Heisten (Moyse & Associates Law Firm, Luxembourg), Alexandra Thépaut (Étude Calvo & Associés, Luxembourg), and Lionel Decotte (SAS Huissiers Réunis, France) and moderated by Dr. Elena Alina Ontanu (University of Tilburg). This first panel aimed to explore specific issues in the application of the EAPO Regulation from the practice perspective. The discussion was opened by Dr. Laurent Heisten, who indicated that the EAPO is way more complex than the Luxembourgish national provisional attachment order, the saisie-arrêt. He highlighted that the Luxembourgish saisie-arrêt has more lenient prerequisites than the EAPO. In his view, that might explain why creditors often opt for the saisie-arrêt instead of the EAPO.

The complexity of the EAPO compared to the Luxembourgish saisie-arrêt was also remarked by Ms. Alexandra Thépaut. However, she also acknowledged that the EAPO presents some advantages against the Luxembourgish national equivalent procedure. In particular, she referred to the certificate that banks have to issue immediately after the implementation of an EAPO (Article 28). This is something that does not occur with the Luxembourgish saisie-arrêt. Another advantage of the EAPO she referred to is the possibility of obtaining information about the debtors’ bank accounts (Article 14).  The Luxembourgish saisie-arrêt also lacks an equivalent information mechanism.

During the discussion, Prof. Gilles Cuniberti intervened to indicate that using the EAPO could be less costly than relying on equivalent domestic provisional measures. He refers to a specific case in which the creditor preferred to apply for an EAPO in Luxembourg instead of a domestic provisional attachment order in Germany. The reason was that in Germany, the fee for applying for a national provisional measure would be in proportion to the amount of the claim, while in Luxembourg, there is no fee to obtain an EAPO.

A second recurrent issue identified by the panellists was the use of standard forms. In this regard, Mr. Lionel Decotte highlighted while standard forms can seem practical in a cross-border context, they are rather complicated to fill in. Ms. Alexandra Thépaut mentioned finding particularly complex the section on the interest rates of the EAPO application standard form.

Second panel discussion: the future reform of the EAPO Regulation

The second panel focused on the potential reform of the EAPO Regulation. The panellists were Prof. Gilles Cuniberti, Dr. Carlos Santaló Goris, and Dr. Nicolas Kyriakides, and it was moderated by Dr. Nicholas Mouttotos. Prof. Gilles Cuniberti explored the boundaries of the material scope of the EAPO Regulation. He first advocated suppressing the arbitration exception. He explained that it had been adopted by a political decision which was not submitted to the discussion of the expert group. This was most unfortunate, as the rationale for excluding arbitration from the Brussels I bis and other judgment regulations (the existence of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards) was inexistent concerning a remedy belonging to enforcement per se, which was always outside of the scope of the Brussels I bis Regulation.

Prof. Gilles Cuniberti also defended making available the EAPO Regulation in claims regarding matrimonial and succession matters, both expressly excluded from its scope. In his view, there is no reason for these two subject matters to be excluded as the Succession and Matrimonial Property Regimes Regulations, again, only apply to jurisdiction and enforcement of judgments (and choice of law), but do not offer any remedy to attach bank accounts. Lastly, he advocated expanding the use of the EAPO to provisional attachment of financial instruments. This is a potential reform of the EAPO Regulation expressly foreseen in Article 53.

Dr. Carlos Santaló Goris focused on the reform of the EAPO Regulation from the creditors’ perspective.  He observed that national case law on the EAPO shows that creditors with an enforceable title encounter many difficulties satisfying the EAPO’s periculum in mora. This is due to the strict interpretation that courts have of this prerequisite in light of Recital 14 of the Preamble. He also mentioned that there is a pending preliminary reference on the interpretation of the EAPO’s periculum in mora before the European Court of Justice (C-198/24, Mr Green).

Regarding the creditor’s security, he stated that the vague criteria used to calculate the amount of the security is also a source of divergences on how the amount of the security is established from one Member State. He provided the example of Germany, where courts often require 100% of the amount of the claim. This percentage contrasts with other Member States, such as Spain, where the amount of the security represents a much lower percentage of the amount of the claim. Additionally, he also suggested reforming the EAPO to transform it into a true enforcement measure. In his view, creditors with an enforceable title should not only have the possibility of obtaining the provisional attachment of the funds in the debtors’ bank accounts but also the garnishment of those funds.

Finally, Dr. Nicolas Kyriakides explored how to foster the use of the EAPO Regulation across the EU. In his view, it would be necessary to expand the use of the EAPO Regulation to purely domestic cases. He referred to the case of the European Small Claims Procedure and how this instrument served as an inspiration for some national legislators to introduce equivalent domestic procedures. In his view, when judges and practitioners use these equivalent domestic procedures, indirectly they become familiar with the EU civil proceedings on which the equivalent domestic procedure was modeled. This is a way of integrating the EU civil proceedings into the legal practice. Therefore, when judges and practitioners have to apply the EU civil procedures, they already know how to do it. This can result in a more efficient and effective application of these EU instruments. On a second level, Dr. Nicolas Kyriakides identified the legal basis that the EU legislator might have to adopt such kinds of measures. He considered that the EU could invoke Article 81 (Judicial cooperation in civil and commercial matters), and Article 114 (Harmonization for the Internal Market) of the Treaty on the Functioning of the European Union could serve to harmonize domestic procedural rules within the boundaries of the principles of subsidiarity, proportionality, and procedural autonomy.

The panelists’ presentations were followed by an open discussion with the audience. One of the issues that was addressed during this discussion was the use of the IBAN to determine the location of the bank accounts. Prof. Gilles Cuniberti expressed his concern about the use of the IBAN since nothing prevents a bank from opening an account with an IBAN that does not correspond to the Member State where the account is effectively held.

Waiting for the Commission’s report on the EAPO Regulation

Following Article 53(1) of the EAPO Regulation, the Commission should have elaborated a report on the application of the EAPO by 18 January 2024. This conference offers a glimpse into what might eventually appear reflected in that report. The EAPO Regulation seems still far from being an instrument often relied on by creditors who try to recover a cross-border claim. The conference, which combined a practical and academic analysis of the EAPO regulation, served to identify some of the problems that might be preventing the EAPO from being perceived by creditors as an efficient tool to secure cross-border claims. Initiatives like this conference can help prepare the ground for designing a more effective EAPO procedure.

 

The Mexican Academy of Private International and Comparative Law (AMEDIP) is holding a webinar on Thursday 30 January 2025 at 14:30 (Mexico City time – CST), 21:30 (CET time). The topic of the webinar is: From the Old to the New Private International Law: Contexts, Objectives, Methods and Practice and will be presented by HE Ambassador Mario J. A. Oyarzábal (in Spanish).

The details of the webinar are:

Link: https://us02web.zoom.us/j/83362977786?pwd=VsniAolvT9vCNnbjVl4FdbAqXkOX9E.1

Meeting ID: 833 6297 7786

Password: AMEDIP

Participation is free of charge.

This event will also be streamed live: https://www.facebook.com/AmedipMX

Issues 3 and 4 of 2024 of ZEuP – Zeitschrift für Europäisches Privatrecht have recently been published. They feature various contributions that may be of interest for the readers of this blog. Specifically, issue 3 includes the following articles and case note. Die Europäisierung des internationalen Erwachsenenschutzes Jan von Hein on the proposal for a […]

While the implementation of Directive (EU) 2024/1069 is underway across EU Member States, and it will have to be done according to the timing already indicated in this blog, attention is increasingly turning to the pressing need to strengthen anti-SLAPPs protections in the Western Balkans. The issue of SLAPPs is a growing concern in this […]

The Société de législation comparée has published a compendium of legal studies on foreign law (Le Droit Étranger). The scholarly works in this 3-volume collection examine the role of foreign law in shaping legal thought and practice, offering insights into its academic contributions, practical applications, and future perspectives. Background Over the last ten years, the […]

An online conference on International Recovery of Maintenance on the Basis of Authentic Instruments is set to take place on 29 January 2025 from 3 to 5 PM CET, hosted by the German Institute for Youth Services and Family Law (DIJuF). Authentic instruments, such as enforceable deeds, allow maintenance debtors to commit to child support […]

Johan Tufte-Kristensen (Copenhagen University) and Mustafa Sert (Gorrissen Federspiel law firm) have authored a new Danish textbook titled International privatret (Private International Law). The book focuses exclusively on choice of law issues, omitting procedural aspects such as jurisdiction and the recognition and enforcement of judgments. It offers a comprehensive overview of choice of law issues from […]

Many thanks to the members who have informed me of the relatively sophisticated phishing email that they received today in my name, asking for assistance. As always, the email address was suspicious. If you reply to this email, you will be asked: Thank you for your kind reply. I sincerely apologize for any inconvenience, but […]

Francesca Farrington (University of Aberdeen) and Michiel Poesen (University of Aberdeen) has made available on SSRN the Research Project Papers No 2024.13-05 on Applicable Law in Claims for Damage Arising Out of Unsafe Working Conditions: The Case of Begum v Maran. This publication is part of an ongoing series of outputs from the LSGL-funded project […]

As announced on this blog, the Faculty of Laws of University College London will host the 20th Anniversary Conference of the Journal of Private International Law on 11, 12 and 13 September 2025. The call for paper issued for this purpose will end on 17 January 2025. Submissions should be sent by that date to […]

This submission written by Celeste Hall, JD Candidate at the University of Pittsburgh School of Law and Global Legal Scholar.

The legal news has been awash lately in the recognition and enforcement of investment arbitration awards by U.S. courts. Most of the press is on the long-running and still-unfolding saga regarding Spain (see here and here). And a new decision recognizing an award against Zimbabwe was just issue at the end of December, as well. Here, however, we would like to add to the news with the recent decision recognizing an investment arbitration award against Mexico in United Mexican States v. Lion Mexico Consolidated.

Like most investment arbitrations, the decision tells a sordid tale. Lion Mexico Consolidated (LMC) is a Canadian company which provided financing to a Mexican businessman, Mr. Hector Cardenas Curiel, to develop real estate projects in Nayarit and Jalisco, Mexico. Cardenas’ company failed to pay on the loans, and LMC tried for years to obtain payment, all to no avail. Cardenas then began what was described as a “complex judicial fraud” to avoid payment, including a forgery and a subsequent lawsuit in a Jalisco court to cancel the loans. LMC was never informed of the suit and therefore, never appeared. The Jalisco Court issued a default judgment discharging the loans and ordering LMC to cancel the mortgages; Cardenas then arranged for an attorney to act fraudulently on LMC’s behalf to file and then purposefully abandon the appeal. LMC only learned of the entire scheme when they attempted to file their own constitutional challenge and were rejected. The Mexican Courts refused to allow LMC to submit evidence of the forgeries, so LMC brought a NAFTA Chapter 11 arbitration against Mexico for its failure to accord Lion’s investments protection under Article 1105(1) of NAFTA.

In the arbitration, Mexico argued that Article 1105(1)(b) only applies to investments, and because LMC is an investor, it could not seek relief under Article 1105(1). The arbitral tribunal disagreed and awarded LMC over US$ 47 million in damages. In the U.S. courts, Mexico petitioned to vacate the Award, and LMC cross-petitioned to affirm it.

Mexico conceded that the DC Circuit’s power to vacate an arbitral award is limited: as long as the tribunal “interpreted” 1105(1) the Court must confirm the award even if serious interpretive error was committed. Mexico attempted to skirt this issue by claiming that the Tribunal did not “interpret” anything. Instead, in Mexico’s view, they simply ignored the literal meaning of investments of investors by granting relief to Lion.

The Court was not impressed by this argument. It held that “[t]he Tribunal addressed Mexico’s interpretation of Article 1105(1) head on, employed common interpretative tools to reach a different conclusion, cited authorities in support of its reading, and explained its reasoning. By any definition of the word, the Tribunal interpreted Article 1105(1). Because the Court can’t second-guess that interpretation, the Court DENIED Mexico’s Petition to Vacate the Arbitral Award, and GRANTED LMC’s Cross- Petition for Confirmation, Recognition, and Enforcement of the Arbitral Award.”

Additionally, the Court denied a motion to intervene filed Hector Cardenas Curiel. Cardenas knew that the arbitral case hinged upon his fraud but did not pursue intervention at the arbitral stage. The Court found that Cardenas’ attempt to intervene at this stage was “too little too late”, and Cardenas did not meet the requirements for intervention under Federal Rule of Civil Procedure 24(a)(2) or 24(b).

This decision is important because it follows a long line of cases giving deference to arbitrators in investment treaty cases; when they interpret the governing treaty and decide cases thereunder, their decisions will not be second-guessed by U.S. courts later.

As posted earlier here, the conference organizers and editors of the JPIL are welcoming submissions for the 20th Anniversary Conference of the Journal of Private International Law, to be held in London 11–13 September 2025.

Proposals including an abstract of up to 500 words can be send to JPrivIL25@ucl.ac.uk until 17 January 2025.

More information can also be found here.

The University of Edinburgh is seeking a full-time permanent Lecturer in Global Law for its School of Law. Further details can be found here. As mentioned in the full job description, expertise in private international law will be appreciated. The closing date for applications is 20 January 2025.

An ERA online seminar on Migrants in European Family Law will take place on 6-7 February 2025. For more information, click here. The programme is available here.

As stated by the organisers:

“This online seminar addresses complex, practical legal issues at the interface between European family and migration law. It will address issues related to the portability of the personal status of migrants, in particular the recognition of marriage and divorce.

We will discuss the protection of migrant children in Europe, care and guardianship of unaccompanied minors, the frictions between family law and migration law in the case of child abduction and the structuring of return procedures.

The seminar will also present the recent case law of the European Court of Human Rights (ECtHR) on family and migration law, including the right to family reunification.”

Early bird registration ends on 13 January 2025.

 

 

This post has been written by Delphine Porcheron, Maître de conférences HDR, University of Strasbourg. On 14 November 2024, the Administrative Court of Paris dismissed a lawsuit filed by Rwandan citizens and associations seeking to hold the French State accountable for its role in the 1994 genocide against the Tutsi in Rwanda, a massacre that […]

 

 

The 26th Volume of the Japanese Yearbook of Private International Law (Kokusai Shiho Nenpo) published by the Private International Law Association of Japan (Kokusai Shiho Gakkai) (hereinafter “PILAJ”)has recently been released.

This new volume features the following table of content (all links direct to the papers’ English abstracts)

 

Part 1 – The Status and Development of Private International Law from a Global Perspective

Corporate Climate Liability in Private International Law (in English)

Marc-Philippe WELLER and Madeleine Petersen WEINER

 

The Case for a Special Conflicts Rule in the European Union for Cross-Border Trade Secret Disputes (in English)

Onur Can SAATCIOGLU

 

Trends in Australian Private International Law (in English)

Mary KEYES

 

Part II – International Transactions and Dispute Resolution through Arbitration and Mediation

The Application of Mandatory Rules of Law in International Arbitration (in Japanese)

Tatsuya NAKAMURA

 

Due Process and Efficiency in Arbitral Proceedings —From a Swiss Perspective (in Japanese)

Kazuaki NISHIOKA

 

Part III – Academic Conference Presentations

On the Relationship between lex rei sitae and the Immutability of Law of Creation —From the Perspective of Temporal and Factual Division of the Applicable Law (in Japanese)

Yoshiaki NOMURA

 

Conflict of Laws and Corporate Environmental Irresponsibility in the Developing World —Remedying Choice of Law Rule for Environmental Damage (in English)

Thu Thuy NGUYEN

 

Arb./Med.Arb. as Multi-layered Dispute Resolution in Practice —Including Practice in Asian Countries and Concrete Mediation Techniques (in Japanese)

Yoshihiro TAKATORI

 

Arrest of Ships and International Private Law (in Japanese)

Fumiko MASUDA

 

The contents of all volumes are available here.

Papers included in volumes 1 (1999) to 23 (2023) are freely available on the PILAJ’s website.

English abstracts of the papers published in Japanese are also available from volume 18 (2016).

The current and past volumes of JYPIL can be ordered from the publisher’s website (Shinzansha).

 

The International Law Association Committee on Alternative Dispute Resolution (ADR) has issued a Call for Papers for a conference scheduled for 7 April 2025 titled ‘Shaping Appropriate ADR in International Law’. Further information is available here. The deadline for submissions is 5 February 2025.

If you require any further information, please do not hesitate to contact info@ila-hq.org

By Harddit Bedi* and Akansha Tripathy**

Introduction

It is beyond dispute that The Convention of International Sales of Goods, 1980 (CISG) has facilitated international trade disputes. However, Courts and tribunals continue to apply their minds in adjudicating the applicability of CISG before advancing into substantive issues. This exercise is not very prolific as it prolongs proceedings. Chapter 1 of the convention lays down the scope and extent of the CISG. Amongst other things, the CISG application does not apply to contracts formed by, inter-alia, auctions under Art. 2(b) of CISG.  The word auction itself is nowhere defined in the convention.

This led to ambiguity. Courts of different jurisdictions had to adjudicate the definition of the word auction, Take, for instance, the Electronic electricity meter case. The Swiss Federal Supreme Court had to determine if the bidding process in a tender contract was the same as an auction. The similarities between a bidding process and an auction cannot be understated. However, unlike an auction, in a tender contract, it is the sellers that bid, not the buyers. Hence, a tender contract may be construed as a reverse auction, not an auction. This leads to the issue: Are tender Contracts—by them being reverse auctions— barred by the CISG under Article 2(b)?

 

The Exclusion of Auctions in CISG—but Why?

Article 2(b) explicitly reads that the CISG exempts sales by auction. In an auction, sellers invite buyers to bid on goods, with the highest bidder securing the purchase. The process ensures competition among buyers, with the help of the seller or an intermediary, and ends with the auctioneer declaring the winning bid. The reason for this exclusion in the convention is not well-founded but speculated. First, it is excluded because auctions are often subject to special rules under the applicable national law, and it is best to not harmonize them. Second, there was no need to include an auction since auctions universally, at that time, did not take place across borders in any case. Third, in an auction, the seller may not know the details about the buyer, including but not limited to, domicile, nationality, and place of operations. That is why, the applicability of the CISG would be uncertain due to Article 2(b) of the CISG since the aforesaid information determines whether the contract is an international one. These reasons justify exclusion, however, defining the term auction would have abated vagueness and ambiguity. Since, in the present context, The exclusion of “sales by auction” can be narrowly interpreted to apply only to traditional auctions, where sellers solicit bids from buyers. However, alternatively, it can be broadly construed to include any competitive bidding process, including reverse auctions.

A Case for CISG Applicability vis-à-vis Tender Contracts

Tender contracts, despite being formed after an auction, do not come under the ambit of Art.2(b). First, just because tender contracts are formed through a bidding process does not make it an auction. It is advanced that tender contracts differ from an auction but may be similar to reverse auctions. In a reverse auction, it is the buyer who invites multiple sellers to bid, to secure goods or services at the lowest possible price. This process is common in procurement, particularly in government tenders and large-scale corporate sourcing. Similarly, since primarily, a tender involves a buyer inviting potential sellers to submit bids for goods or services; the process can be closely equated with a reverse auction in its characteristics—not auctions. Also, the procurer can also consider several other factors and have the discretion to determine to award the contract. This is unlike how an auction functions. In an auction, the seller typically does not have the discretion to consider other factors besides the highest price quoted. Ulrich G. Schroeter, a member of the CISG advisory council, (2022 paper) advances that CISG is applicable in Tender contracts. He states, “The CISG furthermore also applies to international sales contracts concluded with a seller which has been selected by way of a call for tender (invitation to tender, call for bids).” The aforementioned arguments suggest that at the very least it would not be correct to construe tender contracts as auctions. The question that then follows is whether reverse auctions can also be presumed to be included in the ambit of auction mentioned in Art.2(b); which is answered in the subsequent point.

Second, the absence of explicit exclusion extends to implied inclusion. The UNCITRAL Commentary of Art 2 of the convention advances that all international sale of goods contracts can be governed by CISG besides the following. Art 2 does not refer to contracts formed by bidding process or reverse auctions but just auctions. In addition to this, the World Bank standard tender rules also do not explicitly exclude the application of CISG. From these, there is a reasonable inference that reserving an auction or just contracts formed via bidding are not explicitly included. On the contrary, if anything, the CISG application was included in the New Zealand government as guidance for foreign bidders, although it was later changed to “Common Law of contracts.” Such an inclusion is also present in an international purchase of equipment, by a Brazilian nuclear power state-owned entity. With this argument in mind, a counter-argument may be taken to advance that a court/tribunal can extend the interpretation of an auction to also include a reverse auction. However, that would be a way too broad interpretation and no coherent argument exists to make such a broad interpretation.

Third, precedents have historically not exempted CISG application in tender contracts. In 2019, the Swiss Federal Supreme Court dealt with the issue of tender contracts in CISG. It established that contracts initiated through public tenders do not fall under the ambit of Art. 2(b). The test laid is whether or not one party is foreign or not to the tender contract. So long as that element is present in the transaction, tender contracts are just as valid as any other contract with respect to Art 2(b). In another Swiss precedent, while not directly addressing the issue at hand, the tribunal held that an invitation to a tender is a form of invitation to a contract. Hence, a contract formed through just a process of bidding, though not an auction, can be governed by CISG as it so was in the said precedent. Additionally, as stated above, government procurement is done through mostly reverse auctions/Tender contracts/bidding. Such government procurement when faced with an international element has invoked the application of CISG.

 

Conclusion

This question at hand is pertinent since CISG has proven to be a successful framework, hence, its scope and applicability should not be restricted. Especially with relation to tender contracts since they form a substantial method of procurement of big entities and governments. Not to mention, no valid reason exists for the exclusion. The economic reasons are present and not even touched upon since the article strictly restricted itself to legal arguments. To summarize, the applicability of CISG to tender contracts is ambiguous due to Article 2(b), which excludes “sales by auction” from its ambit. Auctions are usually seller-driven competitive bidding. Whereas, Tender contracts are where buyers ask for bids from sellers. By virtue of this, Tender contracts are different from auctions in certain aspects such as control, procedural formalities, and evaluation criteria which are considered factors beyond price. Since it is a form of reverse auction, it would be incorrect to include reverse auctions as an auction under Art.2(b). More importantly, previously, courts and tribunals have not given the word auction such a broad interpretation. It has allowed CISG to govern the contract. Hence, in conclusion, tender contracts do not come under the ambit of “auction” of Art 2(b) CISG.

*Harddit Bedi is a student of Law at BML Munjal University India, and alumnus of the Hague Academy of International Law (2024). **Akansha Tripathy is a student of Law at BML Munjal University, India.

UN/CEFACT would like to invite you to attend: Workshop on Addressing Conflict of Laws and Facilitating Digital Product Passports: Traceability and Transparency of Critical Raw Material Value Chains, Tuesday, 21 January 2025 (AEST)

Agenda

10:00 am – 11:00 am AEST: The UN/CEFACT working group on ‘conflict of laws in the critical raw material (CRM) value chains’ meeting: Introduction and discussion of the UN/CEFACT White Paper draft outline

Moderator: Associate Professor Jie (Jeanne) Huang, Sydney University School of Law.

This is a hybrid event. Please contact jeanne.huang@sydney.edu.au for zoom details.

 

11:00 am – 12:00 pm AEST: Research interview with Dr. David Brown who is a researcher with Mighty Earth and has done a lot of research on deforestation in CRM value chains in Indonesia.  For his recent publication, “From Forests to EVs,” which he co-authored with Mighty Earth.  Kindly refer to https://mightyearth.org/article/from-forests-to-electric-vehicles/. (The interview is not open to the public due to the research ethics requirement)

 

12:00 pm – 13:00 pm AEST: Lunch

 

13:00 pm- 14:00 pm AEST: Professor Philip M. Nichols keynote:

Does Compliance with the Global Anticorruption Regime Require the Use of Artificial Intelligence?: The Case of Managing Global Critical Raw Material Value Chains

Background

Business firms constantly hear that artificial intelligence has changed the world and that they must either utilize artificial intelligence or fall behind. By extension, this would be true of regulatory compliance as well as operations. This article challenges the mantra of artificial intelligence as a ubiquitous agent of change. It does so through the lens of the global anticorruption regime, a transnational web of laws, regulations and norms that work together to reign in corruption. As this article demonstrates, the global anticorruption regime imposes on business firms a requirement to implement effective and up-to-date antibribery programs. Given the prevailing conception of artificial intelligence as the newly-critical tool for business, it would be easy to interpret “effective” and “up-to-date” as requiring the use of artificial intelligence. To determine whether in fact the global anticorruption regime does, this article undertakes two analyses. First, it carefully determines the systems requirements of the type of artificial intelligence most applicable to antibribery programs – systems that can distinguish between honest and corrupt actors and transactions – and determines the regulatory constraints on the use of artificial intelligence in that way. This article then asks specifically what tasks artificial intelligence would be asked to do as part of an antibribery program, and evaluates the capacity of artificial intelligence to perform those tasks given the already determined system requirements and constraints. These analyses yield a surprising conclusion: in some instances the use of artificial intelligence would be helpful, but for most business firms, particularly for smaller firms or firms that have not experienced bribery, the use of artificial intelligence would not be helpful and could be harmful. Regulators and legal scholars must not think of artificial intelligence as a panacea; its potential use must be analyzed in the context of objectives and the capacities, needs, and limits of artificial intelligence.

 

Dr. Philip M. Nichols is the Joseph S. Kolodny Professor of Social Responsibility in Business and Professor of Legal Studies and Business Ethics at the Wharton School of the University of Pennsylvania. He was Co-Chair, UN/CEFACT Law Group (United Nations experts committee on electronic commerce and trade facilitation), 1998 to 2005.

Event page: https://law-events.sydney.edu.au/event/globalanticorruptionregime_ai/

Registration: https://www.eventbrite.com.au/e/does-compliance-with-the-global-anticorruption-regime-require-the-use-of-ai-tickets-1143595548069?aff=oddtdtcreator UN/CEFACT would also like to call for participation:

White Paper on Addressing Conflict of Laws and Facilitating Digital Product Passports in Cross-border Value Chains 

Help draft the white paper on Addressing Conflict of Laws and Facilitating Digital Product Passports (DPPs) in Cross-border Value Chains to achieve legal coordination and establish traceability in global trade law. Aligned with regional and global initiatives, the White Paper seeks to address conflicts of law and foster the legal harmonization essential for the DPPs implementation across borders. The white paper will also ensure that DPPs comply with international standards, promoting interoperability and supporting a globally consistent approach. It will focus on the critical raw materials-the EV batteries value chain but will have broad implications for other industries.

 

The proposed White Paper will (1) present the status quo of conflict of laws in existing national and international laws relating to the implementation of DPPs, and (2) propose solutions for legal coordination and facilitate trade, especially:

1. Analyzing initial uptake of DPPs by industry stakeholders and anticipated impact;
2. Coordinating diversified national laws for cross-border data transfer involved in DPPs;
3. Obtaining mutual recognition of ESG certificates whose data are required by DPPs;
4. Promoting Interoperability between different DPPs; and
5. Incorporating UNTP and other UN/CEFACT industry standards/good practices into international and national trade laws to address legal conflicts in the adoption of DPPs.

Please provide your name/position/associations/email contacts;

Please indicate your expertise;

Please choose the ways to participate (multiple choice):

1. Participate as an active contributor in the working group to draft the White Paper (The group will typically have a one-hour meeting every two weeks from January to May 2025),
2. Participate as an observer in the working group to draft the White Paper,
3. Participate in research interviews, and
4. Any other ways that you think you can contribute.

Deadline to express your EOI is Friday 17 January 2025. Please contact the project lead Dr. Jie (Jeanne) Huang (Jeanne.huang@sydney.edu.au) and forward your email to her research assistant Raven Yang (raven.yang@sydney.edu.au).