The Union of Atlantic States (UAS) is a federal State. In 2015 it signed anAgreement on Friendship and Developmentwith a neighbouring state, Pacifica. The introduction to theAgreementdeclared that its purpose was to:

'establish firm and enduring peace and sincere friendship between the Union of Atlantic States and Pacifica and encourage beneficial economic development within the two States.'

Article 2 states:

1Each High Contracting Party shall at all times accord fair and equitable treatment to nationals and companies of the other High Contracting Party, and to their property and enterprises.

2Property of nationals and companies of either High Contracting Party, including interests in property, shall receive the most constant protection and security within the territories of the other High Contracting Party, in no case less than that required by international law.

Article 3 states:

Nationals of each country shall, so long as their activities are not contrary to public order, safety or values...

(d) have the right to gather and transmit information for dissemination to the public abroad, and otherwise to communicate with other persons inside and outside such territories.

Article 8 states:

Neither High Contracting Party shall impose restrictions or prohibitions on the importation of any product of the other High Contracting Party or on the exportation of any product to the territories of the other High Contracting Party

Article 9 states:

1.The provisions of the preceding Articles shall be subject to the right of either High Contracting Party to apply measures which are necessary to maintain public order, and to protect public health, morals and safety, and to achieve economic security.

2.The provisions of the preceding Articles shall be subject to the right to self-determination, by virtue of which the High Contracting Parties freely determine their political status and freely pursue their economic, social and cultural development.

Article 20 states:

1. Each High Contracting Party shall accord sympathetic consideration to, and shall afford adequate opportunity for consultation regarding, such representations as the other High Contracting Party may make with respect to any matter affecting the operation of the present Treaty.

2. Any dispute between the High Contracting Parties as to the interpretation or application of the present Treaty, not satisfactorily adjusted by diplomacy, shall be submitted to the International Court of Justice, unless the High Contracting Parties agree to settlement by some other pacific means.

Both the UAS and Pacifica are parties to theVienna Convention on the Law of Treaties.

In 2019 state elections were held in the UAS federal states. In one state, East Atlantica, a socialist party, the East Atlantic People's Party (EAPP), won the state elections with a landslide victory. The new socialist government immediately introduced higher taxes for foreign companies operating in East Atlantica, as it was empowered to do under the UAS Constitution.

Pacifica immediately protested to the UAS Federal Government. When the UAS responded that it had no jurisdiction over taxation arrangements in its states, Pacifica responded by imposing economic sanctions on the UAS. It also sent financial support to the Liberal opposition party in East Atlantica and both financial support and arms to some radical right-wing groups, with the intention of formulating unrest in East Atlantica. At the same time,Newstime, a dominant media company operating in East Atlantica, began running a concerted media campaign against the East Atlantic socialist government.Newstimewas incorporated in Citagazze, a small tax haven, but most of its shareholders, staff, and executives were from Pacifica.

The EAPP, and many East Atlantica residents, were outraged by what they perceived as foreign intervention. The EAPP banned foreign media in East Atlantica and local citizens burnt down theNewstimeoffices and the Pacifican consular building. There were police nearby, but they said they were overwhelmed by the numbers of angry citizens and unable to intervene.

Pacifica continued to remonstrate with the UAS about the taxation of its companies and the destruction of theNewstimeoffices and consular building. Publicly, the UAS appeared to be engaged in diplomatic negotiations and keen to reach an accommodation. However, the news leaked that the President of the UAS had stated, during a closed cabinet meeting, that Pacifica had brought all this upon itself, through its intransigence and interference. When Pacifica heard of this comment, it immediately withdrew from negotiations with UAS and commenced proceedings at the International Court of Justice for breaches of the 2015Agreement, and damage caused to theNewstimeoffices and consular building. It also issued arrest warrants for East Atlantic residents involved in the destruction of theNewstimeoffices and the consular building.

You are an international lawyer in the UAS Office of International Law. You have been asked to provide advice on the following matters:

1.What arguments could the UAS make in response to the Pacifican claims at the ICJ? How likely are they to be successful?20 marks

2.What counterclaims might the UAS bring against Pacifica at the ICJ for unlawful actions under international law? How likely are they to be successful?20 marks

When Pacifica heard of this comment, it immediately withdrew from negotiations with UAS and commenced proceedings at the International Court of Justice for breaches of the 2015Agreement. What issue does this raise?

Group of answer choices

Treaty interpretation

Jurisdiction

Intervention

Countermeasures