Framework Legislation for Commercial Activities in the Area

Abstract

When commercial activities, primarily mining,1 are carried out in the Area,2 a framework of commercial law is as helpful on sea as on land. For example, workers should be protected against unfair contract terms, and entrepreneurs should be able to mortgage their equipment to ease financing. However, there is no state to provide this legal framework by general legislation. Could it be established in other ways? The International Seabed Authority (ISA)3 has a mandate to grant licenses for the exploitation of seabed resources in the Area, including setting conditions to ensure, for example, environmental protection and safety.4 This could work well to establish some of the desired legal framework, at least to the extent that states are parties to UNCLOS or recognize the Authority.5 The ISA possesses considerable power in granting licenses with conditions and revoking them if necessary.6 In addition, the risk of not getting licenses in the future can have a disciplinary effect. However, not all kinds of rules can be implemented in this way.7 For example, conditions for licenses cannot be used to alter the position of third parties to their detriment. An example of framework legislation that cannot be simulated by setting conditions for licenses is arrangements for mortgaging seabed installations.