Treaties determine what type of international commercial activity is likely within a country. The design of these treaties can determine the access to raw materials, investment opportunities, and export opportunities. Countries like the U.S. can develop stronger treaties that are more advantageous to an export market while ensuring that American values are important to partnering countries.
Developing countries are regularly looking to attract investment. Investment money is used to fuel their economies, fill government coffers, and create a connection to a larger world. Because of America’s strong economic position it has the capacity to create more advantageous treaties (Chikere Azubuike, 2013). The value of these investments puts the U.S. in a better bargaining position than the other country(s).
This position of power is not necessarily a bad thing. When done well it can help the U.S. fuel its economic hubs for greater development. Such hubs rely on natural resources and international supplies to fuel new product development and manufacturing. Ensuring that treaties consider the needs of these Hubs helps create jobs and encourage higher levels of local economic activity.
As with all negotiations the position of power often determines the terms and agreements of the two parties. Having an advantage in negotiation can help ensure that the right pressure points are being used that determine the outcome of negotiations. That power can help U.S. located firms obtain the resourced they need to grow and create jobs in the local economy.
Treaties are not all about economics and resource obtainment. Treaties can also promote human rights and values (Choudhury, 2009). In this case, solid treaties can also help ensure that American values are considered in business dealings. Such legal frameworks help orientate supplier nations to U.S. interests and perspectives which can further the spread of fundamental American values.
The development of strong American treaties that help turn bi-lateral trade agreements into a wider multi-lateral framework to ensure the anchoring of resources to economic hubs can help foster American interests. Each supplier nation is provided access to sell supplies to the U.S. while obtaining investments into the development of those supplies. The end result is a more efficient and well-developed economic hub that can obtain resources at a lower cost.
Chikere Azubuike, E. (2013). The place of treaties in international investment. Annual Survey of International & Comparative Law, 19.
Choudhury, B. (2009). Democratic implications arising from the intersection of investment arbitration and human rights. Alberta Law Review, 46 (4).