Revision of U.S. ratification of UNCLOS key to a number of maritime industries from Sat, 11/11/2017 - 17:13
Without the universally recognized legal regime governing the exploitation of the mineral resources of the deep-sea beyond the zones of national jurisdictions that UNCLOS provides, US companies will not assume the investment rights associated with such projects until it was clear who had “clear legal title” to the resources extracted.
- Offshore oil and gas development dependent on legal protection of UNCLOS
- U.S. ratification of UNCLOS key to development of deep seabed mining industry
- Success of offshore wind power industry depends on U.S. ratification of UNCLOS
- Marine biotechnology industry would benefit from UNCLOS legal regime
- U.S. underseas cable industry needs UNCLOS protection
- U.S. ratification of UNCLOS is key to sustaining competitiveness of U.S. shipping industry
- Other states will challenge U.S. unilateral claims outside UNCLOS
Quicktabs: Arguments
Contrary to the belief that UNCLOS “discourage[s] U.S. companies from participating in such [mining] activities,” there has been a call by U.S. companies and business leaders to ratify the treaty as soon as possible.201 At the 2012 Forum on the Law of the Sea held in Washington, Jennifer Warren, Vice President of Lockheed Martin, expressed the company’s high interest in deep seabed exploration and continued support of UNCLOS.202 Warren declared, “[r]ecent developments in deep seabed resources have really sharpened our interest in seeing the law of the Sea ratified as soon as possible.”203
Lockheed Martin currently benefits from UNCLOS and the ISA by acting through its British subsidiary.204 Despite this workaround, the company’s actions are symbolic of how important accession to the treaty is to the economic interests of the U.S.205 First, Lockheed’s workaround shows a lack of confidence in the current deep seabed mining regime provided by DSHMRA and the U.S.’s multilateral and bilateral agreements with a select group of nations.206 Second, it demonstrates the value U.S. companies place in security and predictability, both of which are provided by the ISA and UNCLOS.207 Lastly, it validates the significance of deep seabed resources.208 Warren’s statement summarized it best:
The importance of these resources is well understood internationally. Other countries are moving forward quickly and aggressively to access them. As the only U.S.-based claimant, our view is pretty straightforward. Business initiatives to exploit deep seabed mineral resources will only be able to secure the necessary financial investments if done pursuant to the existing international framework.209
In addition, John Ryan, Chief Legal Officer of Level 3 Communications,210 stated, “that any uncertainty inhibits economic growth and investment” when the protection of infrastructure in international waters is not guaranteed.211 While the rest of the world enjoys the benefits of UNCLOS and the ISA, the U.S. idly stands by, watching other nations like China and Russia claim prime locations for deep seabed mining activities.212
Opponents of UNCLOS claim that accession will also harm U.S. commercial interests in the world‘s oceans. The provisions on seabed mining, in particular, are seen as an attempt at international wealth redistribution.65 Additionally, there is a fear that the ISA would have the power to enforce an international tax on resources extracted from the seabed.66
Although these commercial concerns resonate with many economic conservatives, they are among the easiest to debunk, primarily by examining the economic consequences the United States will face if it does not accede. Claims to mineral rights in the Arctic are governed by UNCLOS provisions on an extended continental shelf, and the United States may lose these claims without representation on the ISA or State Party status.67 Additionally, many economic concerns ring hollow in the face of favorable opinions of the treaty by U.S. industries affected by such regulations.68 For example, the oil and gas industries have agreed to pay any tax levied on deep seabed extractions.69
The vastness of ocean space and the limits of our knowledge concerning the oceans’ future economic potential also make it critically important that the United States plays a central role in the future implementation of the convention. The convention facilitates the conduct of marine scientific research to expand understanding of the marine realm. As knowledge increases and as technology advances, the oceans may hold enormous, and as yet only dimly perceived, potential. When coupled with America’s unrivaled capacity for technological innovation, new ocean uses may become essential to helping drive economic prosperity for future generations. In the midst of a historic economic crisis, the United States needs to position itself by joining the treaty in order to secure its share of ocean industries of the future and the high- paying jobs they will create.