Evidence: Recently Added
Our Maritime Security Strategy is founded upon the basic truth that nations with common interests in international commerce, safety, and security can work together to address common challenges. While the Armed Forces of the United States will always enjoy the capability to unilaterally conduct military operations wherever and whenever necessary, we also know that global security depends upon a partnership of maritime nations sharing common goals and values.
Global maritime security is undergoing significant transformation today, and as the world’s foremost maritime power, the United States is both expected and required to lead that transformation. We must lead and manage a maritime security domain in which friendly navies, coast guards, and industry develop common interoperability protocols and information sharing frameworks. In turn, these arrangements must enable distributed maritime operations appropriately scaled to address the full range of 21st Century maritime security challenges, including proliferation of WMD, terrorism, piracy, and transnational criminal activities such as narcotics and human trafficking.
Joining the Law of the Sea Convention is critical to the success of our Maritime Security Strategy. By joining the Convention the United States will be able to effectively develop and lead an association of maritime partners dedicated to ensuring public order in the world’s oceans.
On this specific point, it is worth looking at the example of the President’s Proliferation Security Initiative, or PSI. PSI began in May 2003, when 10 like- minded countries joined the United States to prevent the proliferation of weapons of mass destruction, their delivery systems, and related materials. Those 11 countries endorsed a series of PSI founding principles, including two essential principles from an operational perspective: One, that all States have broad domestic authorities to act against proliferators and, two, that acting cooperatively, they can use those authorities and international law---including the Law of the Sea Convention--- to prevent proliferation. The Law of the Sea Convention recognizes numerous legal bases for taking action against vessels suspected of engaging in proliferation activities, including port State control measures, flag State authority, and the right of warships to approach and visit commercial vessels.
In just four years, PSI has expanded from its original 11 partner-nations to almost 90, and we have had specific operational successes in preventing the proliferation of weapons of mass destruction under PSI. However, our failure to be a Party to the Law of the Sea Convention is limiting further expansion of PSI. Critically important democratic Pacific countries have indicated a desire to support our counter-proliferation efforts, but they tell us that so long as we are not a Party to the Law of the Sea Convention, they will not be able to convince their legislatures to endorse PSI. How, they ask us, can they convince their legislatures that PSI interdiction activities will only occur in accordance with international law including the Law of the Sea Convention, when the leading PSI nation, the United States, refuses to become a party to the Convention?
The Convention also allows us to exercise high seas freedoms in foreign exclusive economic zones, including conducting military activities without coastal state interference. And this is important---the single most contentious issue in oceans law and policy today is the attempt by some foreign coastal States to treat the exclusive economic zone – or EEZ — like a territorial sea. The Convention makes clear that coastal States enjoy resource rights within the EEZ, but they do not enjoy and may not assert full sovereignty within the EEZ.
Because we are not a Party to the Law of the Sea Convention today, we must assert that our navigation and overflight rights and high seas freedoms are based upon customary international law. However, that approach plays directly into the hands of those foreign coastal States that want to move beyond the Convention. They too cite customary international law as the basis for their developing claims of coastal State sovereignty in the EEZ and in international straits.
We need to lock in the navigation and overflight rights and high seas freedoms contained in the Convention while we can. Then, acting from within the Convention, we can exercise effective leadership, and in conjunction with our freedom of navigation program, ensure that those rights and freedoms are not whittled away by foreign States.
An ATS-style ban or overarching regulatory regime is not suitable for the Arctic for two reasons. First, a regime banning Arctic oil and gas production will not materialize because it is not in the interests of the would-be signatories. Whereas the drafters of the ATS were interested in preserving the continent as a scientific sanctuary,37 the Arctic states are already heavily invested in Arctic oil and gas development, not preservation of the region as a scientific sanctuary. For states to disregard those investments in exchange for a ban on development at this point is not feasible.
Second, the five Arctic states likely to have jurisdiction over Arctic waters—Canada, Denmark, Norway, the United States, and Russia— have already declared in unison that no new regulatory scheme is needed.38 Furthermore, building consensus is difficult. For example, the United States’ experience with state regulation of hydraulic fracturing disclosure demonstrates this point. In the United States, public outcry about the contents of hydraulic fracturing fluids has failed to induce a comprehensive national policy response, but instead has led to a flurry of state regulations in recent years.39 States responded quickly to the call for regulation in divergent ways based on what local lawmakers saw as the best way to approach the situation. For example, while New York instituted a moratorium on the use of fracturing in the Syracuse watershed,40 Colorado adopted regulations requiring disclosure of chemicals used in the process with an exception for trade secrets.41 Building consensus regarding a comprehensive regulatory regime between states within a single country is difficult enough, and building such a consensus between countries with no overarching sovereign body may be even more difficult.
So far, the goal of the Arctic states seems to be cooperation in protecting the environment while encouraging investment in hydrocarbon development. This goal is reflected in both regional and country-specific documents. At a regional level, Arctic states have repeatedly declared goals for cooperation. For example, the Ottawa Declaration established the Arctic Council—the main regional coordinating body of Arctic states—in 1996 with the following mission statement:
[T]o provide a means for promoting cooperation, coordination and interaction among the Arctic States, with the involvement of the Arctic Indigenous communities and other Arctic inhabitants on common Arctic issues; in particular, issues of28 sustainable development and environmental protection in the Arctic.
More recently in 2008, five key Arctic states—Canada, Denmark, Norway, the Russian Federation, and the United States—adopted the Ilulissat Declaration, claiming a set of unified policy goals.29 The Ilulissat Declaration captured the following regional policies of the Arctic States:
- commitment to the current legal framework and an observation that there is “no need to develop a new comprehensive international legal regime to govern the Arctic Ocean;”30
- recognition of the role of the Arctic States in protecting the unique Arctic ecosystem; and
- commitment to a cooperative approach to making Arctic development a sustainable undertaking.31
Arctic states are also cognizant of the fact that the current legal framework provides an opportunity for them to obtain effectively sovereign control over the hydrocarbon-rich Arctic waters. The main goal of the United Nations Convention on the Law of the Sea (“UNCLOS”), the international regulatory framework governing the use of the world’s oceans and seas, is to:
facilitate international communication, and . . . promote the peaceful uses of the seas and oceans, the equitable and efficient utilization of their resources, the conservation of their living resources, and the study, protection and preservation of the marine environment.5
Part VI of UNCLOS is key to Arctic hydrocarbon development because it governs the boundaries and extent of states’ sovereign control over offshore natural resources.6 A state exercises “sovereign rights for the purpose of exploring [its continental shelf] and exploiting its natural resources” and may exclude other states from doing so without its consent within its continental shelf.7 As a default rule, a state’s continental shelf extends to the greater of the outer edge of its continental margin8 (up to 350 nautical miles), or 200 nautical miles from the baselines9 from which the breadth of the territorial sea is measured.10 The burden is on the coastal state to establish that the outer edge of its continental margin extends beyond 200 nautical miles.11 To do this, the state must submit certain information outlined in Article 76 to the Commission on the Limits of the Continental Shelf (“CLCS”).12 The CLCS, consisting of twenty-one experts nominated by individual states and elected by all parties to five-year terms, can accept or reject the claims.13 If the CLCS rejects the claim, the state must revise its submission to conform to the formula set out in Article 76.14 The limits established by the state are final and binding.15 Finally, the state provides the Secretary-General of the United Nations with charts and relevant data describing the established outer limits, and then the information is published.16
The inadequacy of the regime provided by the law of the sea to effectively protect submarine cables, the relevance of which in national economies increases as time goes by, is hardly questionable. The UNCLOS, in particular, is a ‘constitutional’ convention, one that needs other instruments to be put in place in order to ensure the effectiveness of most of its provisions. As stated beforehand, BITs can provide only a partial solution to the problem – in other words, they can represent a solution only in those areas where coastal States exercise their sovereignty. In the high seas and in those areas where the sovereignty of a State is limited by the rights and duties of other States, BITs clearly cannot be a suitable solution. However, BITs and investment law in general can nonetheless represent a model worth following to fill the remaining lacunae of the law of the sea in the regime applicable to submarine cables. The lesson to be learned from investment law is that the multilateral approach is not necessarily the most appropriate. In investment law, the bilateral approach has been proven as successful as it allows each State to pursue their interest at the local level by negotiating the level of protection they deem appropriate in a particular State or region for their nationals. BITs could be a suitable instrument to reach effective and constant protection for submarine cables. Alternatively, bilateral or small multilateral treaties could help to solve once and for all the problem of the current inadequacy of the law of the sea in terms of protection of submarine cables.
As previously stated,61 [bilateral investment treaties] BITs can only partially solve the problems currently arising in the regime applicable to submarine cables. That is the reason why BITs have been referred to in this article as a “complementary” regime rather than a “substitutive” one. In fact, there are certain areas in which BITs cannot represent a solution. Reference is made in particular to the problem of intentional acts by terrorists aimed at damaging the cables, and issues related to cables laid down outside the sovereign areas of States (i.e. the High Seas). With regard to the former, the matter would be better addressed by international criminal law. BITs can establish the liability of the host State in case due diligence is not exercised in the protection of the cables. However, international terrorism is something beyond the control of States, and definitely something that can hardly be faced just by applying the ‘due diligence’ required by the standards of protection of investment law. With regard to the lay of submarine cables outside the sovereignty of States, it is evident that the lay of submarine cables in these areas cannot be regulated by BITs. Host States cannot be subject to obligations on areas on which they lack sovereignty.
In conclusion, these interactions and potential conflicts in the regime applicable to submarine cables regime make further ground arise for the integrated planning and management of activities in ocean and coastal areas.
The scholarship has repeatedly affirmed that such a cooperation and integration of different interests would be best achieved by means of the elaboration of a new international convention. However, it has to be pointed out that disruptions to the integrity of submarine cable systems potentially cost cable companies millions of dollars in repairs and lost revenues from e- commerce and telecommunications.29 In this perspective, rather then spending efforts to negotiate a new Convention on submarine cables, a solution – at least a partial one – can be represented by increasing the cooperation between all actors involved (privates and States) by means of BITs. This would help minimizing the risks of interferences and protect the interests of all the parties involved. As South-East Asia currently represents the most-relevant market for the lay of submarine cables, particular attention in the following analysis will be given to the BITs practice in the region.
As previously stated,25 given the importance of submarine cables to the world economy and to all States, additional measures are necessary to protect cables. The majority of the cable damages are caused by human intervention, but there is no obligation under the UNCLOS on coastal States to adopt laws and regulations to protect submarine cables in the territorial sea. Moreover, even if Article 113 UNCLOS requires States to establish rules on the breaking or injury of cables in the high seas or EEZ by their nationals or by a ship flying their flag, if such break was done wilfully or with negligence, this provision is inadequate, as there is no countermeasure if States do not implement it. Furthermore, it does not deal adequately with the threat as well as theft of cables by terrorists or other voluntary acts.