06 AN INTERVIEW WITH MICHAEL EVERY
INTERNATIONAL ARBITRATION 1/3LY
With infrastructure in the developing world still lagging far behind mature markets, the demand for further investment remains substantial and is expected to continue for several decades. While China’s OBOR initiative is thought to be a modern day evolution of its ancient silk trade routes, there is a clear necessity throughout Asia and the rest of the world to enhance trade links between regions and nations; tighter links between the ASEAN region and India is just one example. According to Peter Hirst, Co-Chair of International Arbitration at Clyde & Co, globalisation and state investment have led to the development and expansion of a system of legal and institutional protection designed to put foreign investors and host states on an equal footing. This includes protections for investors in international law and arbitration of investment disputes set out in multi-lateral and bilateral investment treaties, national investment laws and the investment agreements of the parties. This is an established yet developing area of law but there is no doubt that when arbitration disputes involve high stakes, economic and political upheaval can occur. Growth in newmarkets has advantages for investors and investees, but Every believes there are dangers on the horizon as imbalances between global demand and worldwide supply become even more acute. “The underlying backdrop is worrying. Asia has generally grown off the back of exports and that paradigm is coming to an end. You are seeing a backlash with some of the G20 nations saying that western consumers just want their jobs back. You also see China capturing more global trade at the expense of other Asian nations. There are certainly tensions where China makes everything.”
In a recent speech to the United Nations, Theresa May, Prime Minister of the United Kingdom, warned that increasing globalisation had resulted in “too many feeling left behind”. Every says this is just a case of history repeating itself, adding that, “in the long run, you always see a period of free trade breaking down in the end.” He believes this is classic mercantilism at work: “China wants to sell more than it buys. Mercantilismworks brilliantly for the mercantilist, but it’s terrible for everyone else.” China, though, is a sophisticated beast. Its relatively late appearance to the world stage – it joined the World Trade Organisation (WTO) in 2001 – belies a gifted cohort of native policy makers and economists. It has proven adept at shifting direction as soon as obstacles appear to block its path to global pre-eminence. While political antipathy towards its stance on trade and exports may be growing, China is a wealthy saviour for many developing economies and frontier markets that also want to be part of the globalisation phenomenon. Globalisation may be running into a sticky patch, but it has certainly not run its course.
PETER HIRST, CO-CHAIR GLOBAL ARBITRATION INTERNATIONAL.ARBITRATION@CLYDECO.COM
GLOBAL I S AT ION MAY BE RUNNING INTO A S T I CKY PATCH , BUT I T HA S CERTA INLY NOT RUN I T S COURSE .
Made with FlippingBook Online newsletter