The Regulatory Criss-Cross: Interaction between Jurisdictions and The Construction of Global Regulatory Networks
Concern with international regulatory competition, or at least its explicit theorization, is relatively recent, although the issues it raises have a much longer history. This is partly because discussion of the regulation of economic relations has also been recently renewed, as privatization and the reduction of direct state intervention in economic activity have brought more sharply into focus the many other ways in which economic transactions and relations are socially ordered, whether by formal or informal, public or private means. The second main factor is that regulatory régimes have been brought into greater interaction, as the removal of direct barriers to the flows of goods and money between states (tariffs/quotas and exchange controls) has shifted attention towards regulatory difference as a barrier to entry of commodities or capital.
Earlier, from the 1950s, the articulated concern was about regulatory conflicts, identified as being caused by 'extraterritoriality' in the application mainly of USA regulatory requirements (ILA 1970; Lange & Born 1987; Picciotto 1983). This led to legal debates about limitations on jurisdictional reach ( Bowett 1982; Maier 1982; Brilmayer 1987), intersecting with political debate about the desirability of USA 'unilateralism' ( Strange 1986). Attempts were made to develop principles and procedures to accommodate overlaps and conflicts of jurisdiction ( OECD 1987), but since the mid-1980s, with changing patterns of international trade and investment, the underlying problem began to change form.____________________