Liberal Rules on Trade and Investment and the False Promise in Developing Countries

A Tanzanian Perspective

Abstract

International economic law has impacted trade and investment frameworks around the globe through liberalisation of both sectors. Adoption of international economic law principles has potential to impact the economic and social wellbeing of the local population in many countries around the globe. However, some of the countries (Tanzania inclusive) which adopted international economic law seem to have experienced adverse impacts on investment and trade. As a result, Tanzania has taken two major actions recently on the area of investment and trade, namely revamping her position in natural resources laws and refusal to sign the Economic Partnership Agreement with the European Union. This article analyses the two actions as a response of a developing country, Tanzania in particular, against (potential) legal obligations under international economic laws. The article shows that the move taken by Tanzania is an indicator of an awaking sleeping giant, while at the same time pinpointing the potential legal implications to be faced on the areas of investment and trade as a result of the two actions taken. This article therefore calls for both domestic and international efforts to push for changes in international economic law in order to uplift developing countries in their bid to achieve sustainable development.