We have a lot of examples now, because in hundreds of bilateral treaties this private judiciary system exists, and for example, the government of Egypt raised the minimum wage and a company, an important company, Veolia, from France, sued them because they would have to pay their workers more.
It is important that Asian countries, as well as States from other regions, are proactive in sharing with the international community the lessons they are learning from their own climate policies whether these are pilot trading schemes in China or bilateral agreements negotiated by Japan in the context of offsets within voluntary carbon markets.
For now, Beijing has limited itself to counter the ruling with legal arguments, saying that the body territorial disputes are not subject to the United Nations Convention on the Law of the Sea and that this Convention has been violated by the Philippines, which has prevented China to choose the way the management of litigation, as well as established by the bilateral agreements.
Yes, tariffs are not the perfect retaliatory instrument, but they promise to be more effective than other methods, like attempts at persuasion, bilateral agreements, or World Trade Organization cases.
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