ABSTRACT
This chapter examines ‘rules-based’ governance in international economic relations, and the nature and role of international law in ‘rules-based’ governance. Good governance is essential to facilitate international economic activity. International law plays an important function in rules-based governance. In the economic realm, international law provides the framework for regulating economic activity among the members of the international community and provides the international legal framework for rules-based governance. International trade and investment in the region are increasingly becoming subject to international regulation – one that is governed by a rulesbased system and is accompanied by an evolving international legal framework able to regulate economic relations among trading partners. The shift towards a rule-oriented society in Asia is a reflection of the move to rules-based governance globally. Rules-based governance entails, in part at least, norm generation and dispute settlement. Soft law is often distinguished from hard law through the use of such language as ‘guidelines’, ‘declarations’ or ‘principles’ to designate ‘soft’ law.
