The ECJ Subordinates Human Rights to the End of Closer Economic Integration in the Community - Coursework Example

ECONOMIC INTEGRATION INTRODUCTION: The global marketplace of today forces governments, societies and communities to harness technological advancements in communications, transportation and capital mobility. The pace of increasing global market has to be maintained in such a velocity that no fundamental rights of a nation and her people are marred. Certain adjustments and flexibility of human rights are to be effected with some exceptions in modalities. Steadfast impositions of any kind would lead to imbalance in the trade relations. “The issue is not a matter of having to choose between rights and commerce. It’s a matter of putting rights on a par with commerce” (Broadbent.E, 1996). In the global competition of trade world, seeking low cost labour and maintaining minimal labour standards have become a driving force towards global out sourcing. When global marketplace is viewed through this glass, liberalised trade is found to lower1 both environmental and human rights norms, especially labour standards focussing mainly the competition. In practice the global market and global trade have produced negative impacts in many aspects. The negative impacts may be ascribed to unequal distribution of the benefits obtained from economic integration. Improved economic performance of countries is known to violate basic civil and political human rights laying an impression that “growth, in itself is in no way a guarantee of a greater commitment to fundamental rights and freedoms”(D.Bronson and S.Rousseau, 1995) 1.ECONOMIC INTEGRATION: Economic Integration is simply the coordination of economic policies among the countries that have entered into a trade contact. Economic integration is associated with both plus and minus factors making it a mixed formula with an aim of achieving mutual development in the field of economic strength. It comprises many sub divisions of processes/modalities such as PTA(Preferential Trade Agreement), FTA(Free Trade Area), Customs Union, Common Market, Economic Union and Monetary Union. Social and political perception of economic integration is the area where the challenges to the economic development are to be met. The main difference between PTA and FTA lies in the restriction or liberalisation among the member countries and non-member countries. Mostly Favoured Nation principle among member countries of WTO requires a country to grant any trading partner the same extent of treatment in terms of international commerce as it does to any other trading partners. Since this principle is often modified for political reasons, the MFN obligation has become conditional obligation diluting the basic essence of the principle that is ‘unconditional’ and ‘immediate’.(J.H.H.Weiler and Sungjoon Cho, 2006) Once we begin to talk of restriction and liberalisation we must necessarily include the aspects of human rights. Because, the ultimate goal of any integration among societies, communities or countries is maintaining the individuality of human rights at a level harmless to that of another group/groups. But when the issue of economic integration is to be discussed, human rights have to lose its rigidity to some small extent. As pointed out by Michael Mussa (2000), economic integration is affected by three factors: they are (i) improvements in the technology of transportation and communication (ii) the tastes of individuals and societies …taking advantages …(of) the declining costs of transportation and communication. (iii) The public policies that significantly influence the character of economic integration, although not always in the direction of increasing economic integration. (Michael Mussa, 2000 ) The second factor is where the human rights assume a flexible state and enjoys the advantages of economic integration such as cost decline in transport and communication. The third factor is where human rights are susceptible to still further blows from policy making that expects human rights to become still softer in its rigidity. The internal conceptual contradiction between human rights and policy making by the heads of states practically takes several forms including a highly dynamic state of both flexibility and rigidity. Neither flexibility nor the rigidity can be fixed at any moment. The deepening and widening dimensions of economic integration are expected to draw in the disadvantaged in the long run and if such goal is not able to be attained through market forces, efficiency gains are to be made only through actions on the social front.2 2.1. LEGALITY OF HUMAN RIGHTS IN THE CONTEXT OF ECONOMIC INTEGRATION: Economists define economic development in terms of GNP and national income. But the contribution of human rights to economic development is not considered and examined by them in its full sense. Recent economic studies reveal that economic underdevelopment is related to lack of effective protection of human rights. To understand economic development it is also necessary to clearly understand what ‘poverty’ really means. The World Development Report 2001 defines poverty as encompassing not only low income and consumption but also low achievement in education, health, nutrition and other areas of human development. Empowering poor people to circumvent the crisis of poverty through democratic processes is the actual form of economic integration. Reaching above the ‘poverty line’ is no doubt a component of human rights in any community. To attain the development mentioned above, human rights on other areas than economic development are thus to be given less priority. Here comes the subordination of human rights to the economic integration. In contrast to the UN Covenant on Economic, Social and Cultural Rights, the EC’s “treaty constitution” protects welfare-enhancing market competition in a much more comprehensive manner. In EC law free movement of goods, services, capital and related payments, non-discriminatory conditions of competition, as well as social rights are constitutionally protected as ‘fundamental rights’3. 2.2.Wage inequality and outsourcing: Wage equality in any community is a pivotal aspect of human rights. One can not be compelled to render his/her service in an environment of wage inequality. Fixing of wages comprises so many factors including the size, quality of service. Assessment of the capability of work force to yield expected out put is generally made under the atmosphere of temporary wage inequality, which the work force usually accepts. But this acceptance can not be construed as a permanent acceptance foregoing the fundamental rights to switch over to a better opportunity. Generally outsourcing is positively correlated with the relative demand for skilled labour. But global outsourcing has a negative association with the relative wage of skilled labour to less skilled labour within tradable industry, while it is positively associated with the relative wage of skilled labour to less skilled labour within non-tradable industry. (Yong-Yil Choi, December, 2002). Thus wage inequality is both accepted and denied at two different occasions. This makes it evident that human rights issue in respect of wage equality can not be viewed with any steadfast provisions or rules. Judicial perception of wage equality too undergoes the same vacillating modes. 2.3. Political separatism and economic integration: Human rights have frontier limitations among countries. The over all allowance to human rights issues is virtually minimal. Countries that tend to enter into trade among them must necessarily consider this fact of frontier limitations. Alberto Alesina et al (2000) argue that trade liberalisation and average country size are inversely related. They are of the view that as the process of economic ‘globalisation’ progresses, politial separatism will continue to be alive. The concept of relatively large and centralised nation-states will be under an upward threat of regional separatism and a downward thrust of supranational institutions from above. (Alberto Alesina, et al, 2000) 3.EUROPEAN UNION LAW AND EUROPEAN COURT OF JUSTICE: UK Courts have borrowed principle and practice from European Law. The integration has been unduly constrained by the previously unincorporated status of the ECHR and by the court’s justification for the European Law. The principles of administrative law applied by courts in judicial review proceedings and the emergence of new principles of review has been frustrated by the courts’ inability to view EU Law and the ECHR as part of an interlocking whole.(Gordon Anthony, 2002). The casual linkages between economic integration and legal integration has characterised the formation of the European Union. The frequency of national references for preliminary rulings sent to the European Court of Justice has inspired economists like Jean – Yves Pitarakis to investigate its joint dynamics with the expansion of intra EU-trade. Many such researchers have been trying to test the direction with which such linkages were operated. (Jean – Yves Pitarakis and George Tridimas, 2003). The global governance of European Communities and European Union when viewed through the constitutional process which the EC/EU undergoes currently is found to experience the management deficit in regional integration. The achievement on the present stage of integration could be understood from the first experience of European Coal and Steel Community (ESCS) in 1950-51 between six countries that has grown up to the level of present EC/EU of twenty five countries. (Jacques Ziller, 2005) 3.1. GRANGER CASUALITY: Terrorism is the premeditated use or threat of use of extra normal violence or brutality by sub national groups to obtain political, religious or ideological objective through intimidation of a large audience usually not directly involved with the decision making. Although trans-national terrorism has been primarily motivated by nationalism, separatism, racism, nihilism and economic equality, the current trend of terrorism is chiefly on religious fanaticism. (Walter Enders and Todd Sandler, 2000)Terrorism on the ground of economic equality has transcended the first aim of achieving economic equilibrium/stability, since the terrorist groups themselves attain sufficient stability through immoral activities like drug trafficking. Thus the target of the terrorist groups has become the economy of the target nations. The 90s attack on US embassy in Kenya and Tanzania by Osama Bin Laden were found to culminate in the major catastrophe of 9/11. Easy access to media attention by the terrorist groups in a liberal democracy is an unmanageable factor that causes terrorist grievances spill over from one country to other. Free trade is also a fertile soil for such perpetrators to smuggle anti social elements in disguise. Hence, to guard against such misuse of free trade, governments concerned have to take precautionary measures in their trade relations in which some aspects of human rights must necessarily have to be uncared for. In July 1999, the United States International Trade Commission (USITC) initiated a safeguard investigation on the import of line pipe from Korea. Pursuant to Article 12.1(b) of the Agreement on Sageguards, the findings of USITC in November 1999 revealed that serious injury or threat of injury was caused by increased imports. US imposed a definitive safeguard measure on imports of line pipe in the form of duty increase for three years applicable on imports from each member country with effect from March 2000. Though a commissioner of the USITC was expressing a negative determination that there was neither serious nor threat of serious injury, the US administration has proclaimed the safeguard measure taking into consideration the findings of other commissioners. (J.H.H.Weiler and Sungjoon Cho, 2006) 3.2. NEOFUNCTIONALISM: Neofunctionalism chiefly works on health policy. Although member states of EU have carefully isolated their health services and policy from EU since the inception of EU and have been granting narrow responsibilities and weak tools relevant to marginal areas of policy, EU has emerged one of the formative influences in health policy. Legal environments in member countries have forced EU to systematically encroach on health policies, since the activities of EU on areas other than health were met with unexpected contingencies on the health ground. Such encroachments driven by the Court have been justified by the internal market rules and decision within member states. That is neofunctionalism is acceptable on legitimate grounds. 3.3. TECHNICAL BARRIERS TO TRADE: In the economic integration, some technical barriers are seemingly prone to affect the trade as a whole. The WTO has formed a chapter on TBT (Technical Barriers to Trade). Two options, namely, equivalence and mutual recognition are included in the TBT agreement. Equivalence is evoked when the exporting country observes some norms of safeguard or technical specifications with a motive of attaining perfection, for which the importing country observes different modalities for the same motto of perfection. The need for mutual recognition of conformity assessment procedures arises when exporters face costly multiple testing or certification of products. In practice, countries would agree to accept the results of one another’s conformity assessment procedures although the procedures may be different from that of their own. Article 6.3 of TBT agreement envisages the provisions of mutual recognition agreement (MRA) and Article 2.7 talks of equivalence. (J.H.H.Weiler and Sungjoon Cho, 2006,) CONCLUSION: Coordination of economic policies among countries is the need of present days as global trade has become part of essential international activity. While economics of a nation deals with the stability on the standards of her wealth and living condition, global trade deals with the modality to achieve the goal of maintaining economic stability. Economics automatically incorporates the human rights of the country suitable for the development within the territory. Entering into global trade would then have to be viewed with a perception that it involves the economic stability of the partner countries. Economic policies of countries usually differ from on another. Respecting the internal policies of another country with which a deal or trade is entered into is called ‘economic integration’. In this process of economic integration several aspects are to be evolved, handled and protected. The WTO has been formed as a unifying institution for the purpose. The internal policies among the member countries, their judicial approach on the issues of human rights, need for change in their policies during trade are well administered in the treaties and the law of world trade organisation. As human rights are of prime importance in a nation, it ought to be safeguarded. Likewise, human rights of the people of the country with which trade is contracted should in no way be undermined for the purpose of gaining economic development. To achieve this, a country has necessarily to forego certain rigidity of their claim of human rights in order to respect human rights of other country as well as the economic development of both participants. Hence, ECJ subordinates human rights close to the end of economic integration. * * * * Reference list— Alberto Alesina, Enrico Spolaore and Romain Wacziarg, 2000, “Economic Inegration and Political Disintegration”, American Economic Review, Vol. 90:5, 1276-1296 Broadbent. E, quoted in D.Kilgour, “joint Responsibility: Human Rights Across the Commonwealth”, TheParliamentarian, Vol.LXXVII, April 1996, p122 Bronson.D. and S.Rousseau, October, 26 , 1995, “Globalisation and Worker’s Human Rights in the APEC Region”, Working Paper at International Centre for Human Rights and Democratic Development, pp.17 Gordon Anthony, 2002, “UK Public law and European Law: The Dynamics of legal Integration”, Aspen Publishers Inc. Jacques Ziller, 2005, “The Challenge of Governance in Regional Integration . key experiences from Europe”, EUI – LAW Working Paper No.11 Jean – Yves Pitarakis and George Tridimas, 2003, “Joint Dynamics of Legal and Economic Integration in the European Union”, European Journal of Law and Economics, Vol. 16:3, 357-368 J.H.H.Weiler and Sungjoon Cho, 2006, “Tariffs and Customs Law/The Most Favoured Nation Principle, The law of World Trade Organisation, Unit IV J.H.H.Weiler and Sungjoon Cho, 2006, “Technical Barriers to Trade (TBT)”, The law of World Trade Organisation, Unit IX J.H.H.Weiler and Sungjoon Cho, 2006, “Safeguard Measures”, The law of World Trade Organisation, Unit XIV Michael Mussa, 2000, “Global Opportunities and Challenges”,A presentation at the symposium sponsored by Federal Reserve Bank of Kansas City retrieved on 10.8.2007 from http://www.imf.org/external/news.htm ) Yong-Yil Choi, December, 2002, “Global Sourcing and Relative Wages with a non-tradable Good”, Journal of Economic Integration, Vol.17:4, 710-723 Walter Enders and Todd Sandler, 2000, “Is trans national Terrorism Becoming More Threatening?” Journal of Conflict Resolution, Vol. 44:3, 307-332 Read More