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Sovereign Law Series

New York “Charter of Economic
Rights and Duties of States” of
1974


Short-Form Reference:

1974 “Charter of Economic Rights & Duties of States”

In-Line Micro Reference:

1974 “Economic Rights of States”

Ratification / Registration:

UN-GA Res. 29/3281 New York (12 Dec 1974)


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Introductory Notes by the Independent Judiciary

Download Sovereign Law Series – This “Sovereign Law Series” is presented by the
Sovereign Court of International Justice (SCIJ), as a proprietary system for standardized
reference and effective use of international law sources. It provides primary sources
of the modern framework of “conventional international law”, which contains
provisions to invoke “customary international law” which is the “Common Law”.
Download the “Intro & Index” (with links to all documents in the collection) here:

Introduction & Index

Independence from the UN – The United Nations (UN) is not a “world government”,
and has no authority for any type of “global governance”: The UN is prohibited to
interfere with self-determination of peoples or sovereignty of States (UN Charter,
Articles 1.2, 2.1, 2.7), and is liable for any of its own violations of international law and
rights (2012 Declaration on Rule of Law, Article 2). The UN is not a “world
parliament”, and has no authority to enact any form of “legislation”: The UN General
Assembly (GA) is only a forum for States to codify and declare general recognition of
rights and doctrines of international law (UN Charter, Article 13.1).

Reclaiming Law and Rights – The UN has no authority to “own” or “control”
international law: All the conventions actually belong to the Peoples of the Nations,
and the UN is only authorized to register and publish them (1969 Law of Treaties,
Articles 1(e), 76.1, 80; UN Charter, Article 102). Once a convention recognizes “rights”,
those “may not be revoked or modified” (1969 Law of Treaties, Articles 36.1, 37.2),
and “become binding upon” all States as “customary rules of international law” which
are “recognized” by that convention (Article 38). Therefore, all law and rights
evidenced in conventions belong to the People, and can be invoked by the People and
enforced by the Independent Judiciary, in perpetuity.

Words of Rights in Red – Operative words and phrases most effective for invoking and
enforcing Rights, which are the most used by Barristers and Judges, are printed in Red
font for ease of visual reference. Some key words may be underlined for emphasis.

Commentary in Green – [Expert commentary from Barristers and Judges may be
added in Green font, in Brackets, to guide effective use to assert and enforce rights.]



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Official Text of this Law Source as Ratified

Charter of Economic Rights and Duties of States

Preamble

The General Assembly,

Reaffirming the fundamental purposes of the United Nations, in particular the
maintenance of international peace and security, the development of friendly
relations among nations and the achievement of international cooperation in solving
international problems in the economic and social fields;

Affirming the need for strengthening international cooperation for development;

Declaring that it is a fundamental purpose of the present Charter to promote the
establishment of the new international economic order, based on equality, sovereign
equality, interdependence, common interest and cooperation among all States,
irrespective of their economic and social systems;

Desirous of contributing to the criterion of conditions for:

(a)
The attainment of wider prosperity among all countries and of higher
standards of living for all peoples,

(b)
The promotion by the entire international community of the economic
and social progress of all countries, especially developing countries,

(c)
The encouragement of cooperation, on the basis of mutual advantage and
equitable benefits for all peace-loving States which are willing to carry out the
provisions of the present Charter, in the economic, trade, scientific and technical
fields, regardless of political, economic or social systems,

(d)
The overcoming of main obstacles in the way of economic development
of the developing countries,

(e)
The acceleration of the economic growth of developing countries with a
view to bridging the economic gap between developing and developed countries,

(f)
The protection, preservation and enhancement of the environment;

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Mindful of the need to establish and maintain a just and equitable economic and social
order through:

(a)
The achievement of more rational and equitable international economic
relations and the encouragement of structural changes in the world economy,

(b)
The creation of conditions which permit the further expansion of trade
and intensification of economic cooperation among all nations,

(c)
The strengthening of the economic independence of developing
countries,

(d)
The establishment and promotion of international economic relations,
taking into account the agreed differences in development of the developing countries
and their specific needs;

Determined to promote collective economic security for development, in particular of
the developing countries, with strict respect for the sovereign equality of each State
and through the cooperation of the entire international community;

Considering that genuine cooperation among States, based on joint consideration of
and concerted action regarding international economic problems, is essential for
fulfilling the international community's common desire to achieve a just and rational
development of all parts of the world;

Stressing the importance of ensuring appropriate conditions for the conduct of normal
economic relations among all States, irrespective of differences in social and economic
systems, and for the full respect of the rights of all peoples, as well as strengthening
instruments of international economic cooperation as a means for the consolidation of
peace for the benefit of all;

Convinced of the need to develop a system of international economic relations on the
basis of sovereign equality, mutual and equitable benefit and the close
interrelationship of the interests of all States;

Reiterating that the responsibility for the development of every country rests primarily
upon itself but that concomitant and effective international cooperation is an essential
factor for the full achievement of its own development goals;

Firmly convinced of the urgent need to evolve a substantially improved system of
international economic relations;

Solemnly adopts the present Charter of Economic Rights and Duties of States:
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Chapter I – Fundamentals of International Economic Relations

Economic as well as political and other relations among States shall be governed, inter
alia, by the following principles:

(a)
Sovereignty, territorial integrity and political independence of States;

(b) Sovereign equality of all States;

(c) Non-aggression;

(d) Non-intervention;

(e) Mutual and equitable benefit;

(f)
Peaceful coexistence;

(g) Equal rights and self-determination of peoples;

(h) Peaceful settlement of disputes;

(i)
Remedying of injustices which have been brought about by force and
which deprive a nation of the natural means necessary for its normal development;

(j)
Fulfillment in good faith of international obligations;

(k) Respect for human rights and international obligations;

(l)
No attempt to seek hegemony and spheres of influence;

(m) Promotion of international social justice;

(n)
International cooperation for development;

(o) Free access to and from the sea by land-locked countries within the
framework of the above principles.



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Chapter II – Economic Rights and Duties of States

Article 1

Every State has the sovereign and inalienable right to choose its economic system as
well as it political, social and cultural systems in accordance with the will of its people,
without outside interference, coercion or threat in any form whatsoever.

Article 2

1.
Every State has and shall freely exercise full permanent sovereignty, including
possession, use and disposal, over all its wealth, natural resources and economic
activities.

2.
Each State has the right:

(a)
To regulate and exercise authority over foreign investment within its
national jurisdiction in accordance with its laws and regulations and in conformity with
its national objectives and priorities. No State shall be compelled to grant preferential
treatment to foreign investment;

(b)
To regulate and supervise the activities of transnational corporations
within its national jurisdiction and take measures to ensure that such activities comply
with its laws, rules and regulations and conform with its economic and social policies.
Transnational corporations shall not intervene in the internal affairs of a host State.
Every State should, with full regard for its sovereign rights, cooperate with other
States in the exercise of the right set forth in this subparagraph;

(c)
To nationalize, expropriate or transfer ownership of foreign property, in
which case appropriate compensation should be paid by the State adopting such
measures, taking into account its relevant laws and regulations and all circumstances
that the State considers pertinent. In any case where the question of compensation
gives rise to a controversy, it shall be settled under the domestic law of the
nationalizing State and by its tribunals, unless it is freely and mutually agreed by all
States concerned that other peaceful means be sought on the basis of the sovereign
equality of States and in accordance with the principle of free choice of means.



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Article 3

In the exploitation of natural resources shared by two or more countries, each State
must cooperate on the basis of a system of information and prior consultations in
order to achieve optimum use of such resources without causing damage to the
legitimate interest of others.

Article 4

Every State has the right to engage in international trade and other forms of economic
cooperation irrespective of any differences in political, economic and social systems.
No State shall be subjected to discrimination of any kind based solely on such
differences. In the pursuit of international trade and other forms of economic
cooperation, every State is free to choose the forms of organization of its foreign
economic relations and to enter into bilateral and multilateral arrangements
consistent with its international obligations and with the needs of international
economic cooperation.

Article 5

All States have the right to associate in organizations of primary commodity producers
in order to develop their national economies, to achieve stable financing for their
development and, in pursuance of their aims, to assist in the promotion of sustained
growth of the world economy, in particular accelerating the development of
developing countries. Correspondingly, all States have the duty to respect that right
by refraining from applying economic and political measures that would limit it.

Article 6

It is the duty of States to contribute to the development of international trade of
goods, particularly by means of arrangements and by the conclusion of long-term
multilateral commodity agreements, where appropriate, and taking into account the
interest of producers and consumers. All States share the responsibility to promote
the regular flow and access of all commercial goods traded at stable, remunerative
and equitable prices, thus contributing to the equitable development of the world
economy, taking into account, in particular, the interests of developing countries.



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Article 7

Every State has the primary responsibility to promote the economic, social and cultural
development of its people. To this end, each State has the right and the responsibility
to choose its means and goals of development, fully to mobilize and use its resources,
to implement progressive economic and social reforms and to ensure the full
participation of its people in the process and benefits of development. All States have
the duty, individually and collectively, to cooperate in eliminating obstacles that hinder
such mobilization and use.

Article 8

States should cooperate in facilitating more rational and equitable international
economic relations and in encouraging structural changes in the context of a balanced
world economy in harmony with the needs and interests of all countries, especially
developing countries, and should take appropriate measures to this end.

Article 9

All States have the responsibility to cooperate in the economic, social, cultural,
scientific and technological fields for the promotion of economic and social progress
throughout the world, especially that of the developing countries.

Article 10

All States are juridically equal and, as equal members of the international community,
have the right to participate fully and effectively in the international decision-making
process in the solution of world economic, financial and monetary problems, inter alia,
through the appropriate international organizations in accordance with their existing
and evolving rules, and to share in the benefits resulting therefrom.

Article 11

All States should cooperate to strengthen and continuously improve the efficiency of
international organizations in implementing measures to stimulate the general
economic progress of all countries, particularly of developing countries, and therefore
should cooperate to adapt them, when appropriate, to the changing needs of
international economic cooperation.



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Article 12

1.
States have the right, in agreement with the parties concerned, to participate in
subregional, regional interregional cooperation in the pursuit of their economic and
social development. All States engaged in such cooperation have the duty to ensure
that the policies of those groupings to which they belong correspond to the provisions
of the present Charter and are outward-looking, consistent with their international
obligations and with the needs of international economic cooperation, and have full
regard for the legitimate interests of third countries, especially developing countries.

2.
In the case of groupings to which the States concerned have transferred or may
transfer certain competences as regards matters that come within the scope of the
present Charter, its provisions shall also apply to those groupings in regard to such
matters, consistent with the responsibilities of such States as members of such
groupings. Those States shall cooperate in the observance by the groupings of the
provisions of this Charter.

Article 13

1.
Every State has the right to benefit from the advances and development in
science and technology for the acceleration of its economic and social development.

2.
All States should promote international scientific and technological cooperation
and the transfer of technology, with proper regard for all legitimate interests
including, inter alia, the rights and duties of holders, suppliers and recipients of
technology. In particular, all States should facilitate the access of developing countries
to the achievements of modern science and technology, the transfer of technology
and the creation of indigenous technology for the benefit of the developing countries
in forms and in accordance with procedures which are suited to their economies and
their needs.

3.
Accordingly, developed countries should cooperate with the developing
countries in the establishment, strengthening and development of their scientific and
technological infrastructures and their scientific research and technological activities
so as to help to expand and transform the economies of developing countries.

4.
All States should cooperate in research with a view to evolving further
internationally accepted guidelines or regulations for the transfer of technology,
taking fully into account the interest of developing countries.



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Article 14

Every State has the duty to cooperate in promoting a steady and increasing expansion
and liberalization of world trade and an improvement in the welfare and living
standards of all peoples, in particular those of developing countries.

Accordingly, all States should cooperate, inter alia, towards the progressive
dismantling of obstacles to trade and the improvement of the international framework
for the conduct of world trade and, to these ends, coordinated efforts shall be made
to solve in an equitable way the trade problems of all countries, taking into account
the specific trade problems of the developing countries.

In this connection, States shall take measures aimed at securing additional benefits for
the international trade of developing countries so as to achieve a substantial increase
in their foreign exchange earnings, the diversification of their exports, the acceleration
of the rate of growth of their trade, taking into account their development needs, an
improvement in the possibilities for these countries to participate in the expansion of
world trade and a balance more favourable to developing countries in the sharing of
the advantages resulting from this expansion, through, in the largest possible
measure, a substantial improvement in the conditions of access for the products of
interest to the developing countries and, wherever appropriate, measures designed to
attain stable, equitable and remunerative prices for primary products.

Article 15

All States have the duty to promote the achievement of general and complete
disarmament under effective international control and to utilize the resources
released by effective disarmament measures for the economic and social development
of countries, allocating a substantial portion of such resources as additional means for
the development needs of developing countries.

Article 16

1.
It is the right and duty of all States, individually and collectively, to eliminate
colonialism, apartheid, racial discrimination, neo-colonialism and all forms of foreign
aggression, occupation and domination, and the economic and social consequences
thereof, as a prerequisite for development. States which practise such coercive
policies are economically responsible to the countries, territories and peoples affected
for the restitution and full compensation for the exploitation and depletion of, and
damages to, the natural and all other resources of those countries, territories and
peoples. It is the duty of all States to extend assistance to them.

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2.
No State has the right to promote or encourage investments that may
constitute an obstacle to the liberation of a territory occupied by force.

Article 17

International cooperation for development is the shared goal and common duty of all
States. Every State should cooperate with the efforts of developing countries to
accelerate their economic and social development by providing favourable external
conditions and by extending active assistance to them, consistent with their
development needs and objectives, with strict respect for the sovereign equality of
States and free of any conditions derogating from their sovereignty.

Article 18

Developed countries should extend, improve and enlarge the system of generalized
non-reciprocal and non-discriminatory tariff preferences to the developing countries
consistent with the relevant agreed conclusions and relevant decisions as adopted on
this subject, in the framework of the competent international organizations.

Developed countries should also give serious consideration to the adoption of other
differential measures, in areas where this is feasible and appropriate and in ways
which will provide special and more favourable treatment, in order to meet the trade
and development needs of the developing countries.

In the conduct of international economic relations the developed countries should
endeavour to avoid measures having a negative effect on the development of the
national economies of the developing countries, as promoted by generalized tariff
preferences and other generally agreed differential measures in their favour.

Article 19

With a view to accelerating the economic growth of developing countries and bridging
the economic gap between developed and developing countries, developed countries
should grant generalized preferential, non-reciprocal and non-discriminatory
treatment to developing countries in those fields of international economic
cooperation where it may be feasible.

Article 20

Developing countries should, in their efforts to increase their over-all trade, give due
attention to the possibility of expanding their trade with socialist countries, by
granting to these countries conditions for trade not inferior to those granted normally
to the developed market economy countries.
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Article 21

Developing countries should endeavour to promote the expansion of their mutual
trade and to this end may, in accordance with the existing and evolving provisions and
procedures of international agreements where applicable, grant trade preferences to
other developing countries without being obliged to extend such preferences to
developed countries, provided these arrangements do not constitute an impediment
to general trade liberalization and expansion.

Article 22

1.
All States should respond to the generally recognized or mutually agreed
development needs and objectives of developing countries by promoting increased
net flows of real resources to the developing countries from all sources, taking into
account any obligations and commitments undertaken by the States concerned, in
order to reinforce the efforts of developing countries to accelerate their economic and
social development.

2.
In this context, consistent with the aims and objectives mentioned above and
taking into account any obligations and commitments undertaken in this regard, it
should be their endeavour to increase the net amount of financial flows from official
sources to developing countries and to improve the terms and conditions thereof.

3.
The flow of development assistance resources should include economic and
technical assistance.

Article 23

To enhance the effective mobilization of their own resources, the developing countries
should strengthen their economic cooperation and expand their mutual trade so as to
accelerate their economic and social development. All countries, especially developed
countries, individually as well as through the competent international organizations of
which they are members, should provide appropriate and effective support and
cooperation.

Article 24

All States have the duty to conduct their mutual economic relations in a manner which
takes into account the interest of other countries. In particular, all States should avoid
prejudicing the interests of developing countries.


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Article 25

In furtherance of world economic development, the international community,
especially its developed members, shall pay special attention to the particular needs
and problems of the least developed among the developing countries, of land-locked
developing countries and also island developing countries, with a view to helping them
to overcome their particular difficulties and thus contribute to their economic and
social development.

Article 26

All States have the duty to coexist in tolerance and live together in peace, irrespective
of differences in political, economic, social and cultural systems, and to facilitate trade
between States having different economic and social systems. International trade
should be conducted without prejudice to generalized non-discriminatory and non-
reciprocal preferences in favour of developing countries, on the basis of mutual
advantage, equitable benefits and the exchange of most-favoured-nation treatment.

Article 27

1.
Every State has the right to enjoy fully the benefits of world invisible trade and
to engage in the expansion of such trade.

2. World invisible trade, based on efficiency and mutual and equitable benefit,
furthering the expansion of the world economy, is the common goal of all States. The
role of developing countries in world invisible trade should be enhanced and
strengthened consistent with the above objectives, particular attention being paid to
the special needs of developing countries.

3.
All States should cooperate with developing countries in their endeavours to
increase their capacity to earn foreign exchange from invisible transactions, in
accordance with the potential and needs of each developing country and consistent
with the objectives mentioned above.

Article 28

All States have the duty to cooperate in achieving adjustments in the prices of exports
of developing countries in relation to prices of their imports so as to promote just and
equitable terms of trade for them, in a manner which is remunerative for producers
and equitable for producers and consumers.




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Chapter III – Common Responsibilities towards the International Community

Article 29

The sea-bed and ocean floor and the subsoil thereof, beyond the limits of national
jurisdiction, as well as the resources of the area, are the common heritage of mankind.
On the basis of the principles adopted by the General Assembly in resolution 2749
(XXV) of 17 December 1970, all States shall ensure that the exploration of the area and
exploitation of its resources are carried out exclusively for peaceful purposes and that
the benefits derived therefore are shared equitably by all States, taking into account
the particular interest and needs of developing countries; an international regime
applying to the area and its resources and including appropriate international
machinery to give effect to its provisions shall be established by an international treaty
of a universal character, generally agreed upon.

Article 30

The protection, preservation and enhancement of the environment for the present
and future generations is the responsibility of all States. All States shall endeavour to
establish their own environment and development policies in conformity with such
responsibility. The environmental policies of all States should enhance and not
adversely affect the present and future development potential of developing
countries. All States have the responsibility to ensure that activities within their
jurisdiction or control do not cause damage to the environment of other States or of
areas beyond the limits of national jurisdiction. All States should cooperate in evolving
international norms and regulations in the field of the environment.



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Chapter IV – Final Provisions

Article 31

All States have the duty to contribute to the balanced expansion of the world
economy, taking duly into account the close interrelationship between the well-being
of the developed countries and the growth and development of the developing
countries, and the fact that the prosperity of the international community as a whole
depends upon the prosperity of its constituent parts.

Article 32

No State may use or encourage the use of economic, political or any other type of
measures to coerce another State in order to obtain from it the subordination of the
exercise of its sovereign rights.

Article 33

1.
Nothing in the present Charter shall be construed as impairing or derogating
from the provisions of the Charter of the United Nations or actions taken into
pursuance thereof.

2.
In their interpretation and application, the provisions of the present Charter are
interrelated and each provision should be construed in the context of the other
provisions.

Article 34

An item on the Charter of Economic Rights and Duties of Sates shall be included in the
agenda of the General Assembly at its thirtieth session, and thereafter on the agenda
of every fifth session. In this way a systematic and comprehensive consideration of
the implementation of the Charter, covering both progress achieved and any
improvement and additions which might become necessary, would be carried out and
appropriate measures recommended. Such consideration should take into account
the evolution of all the economic, social, legal and other factors related to the
principles upon which the present Charter is based and on its purpose.