Although the use of the plural on ‘provisions’, in the Transparency Mechanism could also be interpreted as meaning notification under GATT Article XXIV (for RTAs in goods) and GATS Article V (for RTAs in services) only, it remains an open question. Consequently, notification of the Protocol on Trade in Goods of the AfCFTA under both routes (GATT Article XXIV and Enabling Clause) would come as no surprise despite the dubious legality of such a practice.

This webinar is a follow-up to the recently concluded Taxation and the Social Contract in a Post-Pandemic Era: Domestic and International Dimensions Symposium which had 20 blog submissions. The Webinar panelists will deliberate on the following questions: has the social contract between the state and the governed in many states been broken? Can the broken social contract be repaired and what role can the law play in repairing the broken social contract? How should countries reform their tax law and policies to be self-sufficient, while ensuring representation and accountability? What is the role of international tax rules in national sufficiency and how should international tax rules be designed in light of fiscal sovereignty and equity?”

The Mozambique scandal shows how much damage irresponsible lending can cause.  A citizen or a class of citizens injured by an irresponsible loan should be able to pursue a civil suit for damages against the responsible government officials and lender or lenders:  i) in the country where one or more of the lenders is headquartered, ii) the country where one or more of the branches or subsidiaries that extended or approved the loan is located, or iii) in any country where the lender or lenders have a substantial presence.

In the meantime, since the re-entry of Mozambique into the international debt markets may take time, the poor communities may not have the wherewithal to survive that long.  So, what is the last piece of the puzzle? An IMF arrangement with conditionalities? What conditionalities? My next piece intends to consider this.

We recognise that the current proposal is limited in resolving the longer-term debt burden of developing countries. The stay of enforcement does not introduce any changes in the substantive obligations contracted by the parties. Thus, the standstill will only temporarily suspend the execution and enforcement of eligible financial obligations during the designated period. Meanwhile, interest on the principal will continue to accrue. The proposal is also meant to be used as a ‘shield’ rather than a ‘sword’, i.e. the stay will only be triggered as a defence by the sovereign debtor in the event of a claim against it by a private creditor.

The Mozambican case of odious debt is an illustration of several similar cases around the world whereby consultants from multinational corporations identify development countries with something of value, such as minerals, and persuade the authorities of these countries to secretly take on huge development loans with banks. In most cases, the money never reaches the countries. Rather, the money is transferred directly from the banks to contractors and the countries are then left with massive debts. Resources and companies from developing countries are given as collaterals for these loans. Therefore, the resources that countries should use to invest in development are transferred to service these odious debts. In summary, this is what happened in Mozambique.

On May 8, 2020, the Mozambique Constitutional Council decided that non-concessional loans totaling 622 million USD borrowed from two London-based banks – Credit Suisse and Russian VTB - was illegal, null and void. The Mozambican borrowers were three State Owned Enterprises that at the time did not been formally constituted. The basis of the Constitutional Council’s decision was that this loan was obtained without approval of Parliament. Further, the Council held that amount was in excess of the borrowing limit permissible under the Constitution and laws of Mozambique.

World Trade Organization (WTO) member states are moving towards increased reliance on renewable energy and are enacting domestic policies to encourage investment in renewable energy technology. These domestic policies have not escaped the scrutiny of other WTO members, who in some cases have commenced dispute resolution processes to resolve claims of non-compliance with WTO Agreements. This commentary discusses relevant decisions of the WTO dispute resolution bodies and the possible effect of these decisions on renewable energy in Africa.

For decades, humans have been drawn to space exploration for scientific, security and commercial purposes. Private companies such as SpaceX and Blue Origin have undertaken daring projects to commercialize outer space, including tourism, mining space resources and establishing installations and even extra-terrestrial habitats. The allocation of the benefits from outer space is a highly disputed issue, from the early days of space exploration to date. We believe that the issue of taxation, hardly discussed so far, is vital when considering the proper distribution of space benefits