Natural resource sovereignty and economic development in the WTO in light of the recent case law involving raw materials and rare earths

Abstract

The principle of permanent sovereignty over natural resources (PSNR) has been fundamental for developing nations to realize their political and economic independence. Increasingly, the principle of PSNR has been subjected to pressures, which limit the rights granted to States over their natural resources. Principles such as ‘common concern of humankind’ and ‘sustainable development’ are adding new goals and limitations to PSNR. The World Trade Organization (WTO) has brought the principle of PSNR into the WTO system for the first time through recent case law. This article explores the way in which the principle of PSNR has been adapted to the multilateral trading system, arguing that this treatment imposes limitations on States’ actions regarding their economic development. The article also suggests how the WTO should develop its treatment of PSNR, bearing in mind the historical calling for PSNR to further economic development.