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Exclusive economic zone

Exclusive Economic Zone (EEZ)

An Exclusive Economic Zone (EEZ) is a maritime area where a coastal state has sovereign rights over the exploration, exploitation, conservation, and management of natural resources, both living and non-living, within its waters, seabed, and subsoil33. This includes activities such as fishing, oil and gas production, and the generation of energy from water, currents, and winds32. The EEZ is a critical concept within international law that profoundly impacts global economic development and geopolitics. It extends seaward from the outer limit of a nation's territorial sea up to 200 nautical miles (approximately 370 kilometers) from its coastal baseline31. While a coastal state exercises special jurisdiction within its EEZ for economic purposes, the surface waters of the EEZ remain international waters, allowing other states freedom of navigation and overflight.

History and Origin

The concept of the Exclusive Economic Zone (EEZ) emerged from a growing recognition by nations of the importance of marine resources and a desire to control these resources beyond traditional territorial limits. Historically, a country's sovereignty over its adjacent waters was limited to a narrow band, often just three nautical miles, based on the range of cannon shot.

A significant shift began in the mid-20th century, with the United States' Truman Proclamation of 1945 asserting jurisdiction over the natural resources of its continental shelf30. This act spurred similar claims by other nations, particularly in Latin America and Africa, leading to a global trend of expanding maritime claims29. These early assertions laid the groundwork for the more comprehensive framework that would eventually define the EEZ. The formal establishment of the EEZ, as it is understood today, was codified by the 1982 United Nations Convention on the Law of the Sea (UNCLOS)28. After more than a decade of negotiations, UNCLOS created a standardized legal regime for ocean use and the protection of marine natural resources, introducing the EEZ as a distinct zone beyond the territorial sea26, 27.

Key Takeaways

  • An Exclusive Economic Zone (EEZ) grants a coastal state sovereign rights for exploring, exploiting, conserving, and managing marine resources up to 200 nautical miles from its coastline.
  • These rights cover both living resources (e.g., fisheries) and non-living resources (e.g., oil, natural gas, wind energy) within the water column, seabed, and subsoil.
  • The EEZ differs from territorial waters; while the coastal state has economic rights, other nations generally retain freedoms of navigation and overflight in the EEZ.
  • The legal framework for EEZs is primarily defined by the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
  • EEZs play a crucial role in national economies, resource management, and international maritime relations.

Interpreting the EEZ

The Exclusive Economic Zone provides a framework for how nations interact with the ocean's resources and how maritime boundaries are perceived. For a coastal state, its EEZ represents a significant expansion of its economic influence and responsibility, offering exclusive access to vast marine wealth25. This means the state can regulate fishing quotas, authorize or prohibit hydrocarbon exploration, and control scientific research within its designated zone24.

The existence of an EEZ shifts a considerable portion of the world's oceans from what would otherwise be high seas (where all nations have equal access) into areas under specific national control for economic purposes23. This redefinition of maritime space has profoundly impacted global fisheries, energy markets, and foreign policy. Interpreting the EEZ involves understanding these specific economic rights versus the broader freedoms of navigation that persist, balancing a nation's self-interest with the collective international interest in open seas.

Hypothetical Example

Imagine the fictional nation of "AquaLand," a small island nation with a long coastline. Prior to the establishment of its Exclusive Economic Zone, AquaLand's fishermen could only fish within their 12-nautical-mile territorial sea, while foreign vessels could operate freely just beyond that limit, often depleting fish stocks that migrated near AquaLand's shores.

After adopting the principles of the United Nations Convention on the Law of the Sea, AquaLand proclaims an EEZ extending 200 nautical miles from its coast. This new EEZ instantly expands AquaLand's marine area of economic control. The government of AquaLand can now implement a comprehensive resource management plan. They conduct surveys to assess fish populations and set sustainable catch limits, issuing licenses to both domestic and foreign fishing fleets within their EEZ. For instance, if surveys indicate a healthy tuna population, AquaLand might issue 100 tuna fishing permits, reserving 70 for its own fleet and selling 30 to licensed foreign vessels, generating significant revenue. Furthermore, geological surveys within the EEZ reveal potential offshore oil reserves, leading AquaLand to invite international companies to bid on exploration contracts, promising future energy independence and royalties for the nation.

Practical Applications

The Exclusive Economic Zone has several vital practical applications that directly influence national economies and global markets:

  • Fisheries Management: EEZs grant coastal states the exclusive right to manage and conserve fish stocks within their zones. This allows for the implementation of quotas, licensing systems, and enforcement measures to prevent overfishing and ensure the sustainability of marine life, which is crucial for food security22. Countries can prohibit foreign vessels from fishing or grant access in exchange for payment, contributing to national revenue21.
  • Energy and Mineral Extraction: Nations can explore and exploit non-living resources such as oil, natural gas, and various minerals from the seabed and subsoil within their EEZs. This includes developing offshore wind farms and other forms of ocean-based renewable energy20. The U.S. Exclusive Economic Zone, for instance, is vast and holds significant untapped potential for resources like critical minerals19.
  • Scientific Research: Coastal states have jurisdiction over marine scientific research conducted within their EEZs, requiring consent for research activities by other nations. This control allows them to guide studies that benefit their specific marine environments and resource needs.
  • Environmental Protection: The EEZ framework enables coastal states to enact and enforce laws for the protection and preservation of the marine environment within their zones, combating pollution and protecting fragile ecosystems18.
  • Economic Contribution: For many nations, especially those with extensive coastlines, the economic activities within their EEZ, such as fishing, aquaculture, and offshore energy, can represent a substantial portion of their gross domestic product and contribute significantly to economic growth.

Limitations and Criticisms

Despite its significant role in maritime governance, the Exclusive Economic Zone concept faces several limitations and criticisms:

  • Boundary Disputes: Perhaps the most prominent challenge is the delimitation of EEZ boundaries, especially between states with adjacent or opposite coasts. When baselines are less than 400 nautical miles apart, EEZs can overlap, leading to complex and often contentious maritime disputes. For example, Indonesia and Vietnam have ongoing disagreements over their EEZ boundaries in the Natuna waters, which has led to incidents involving illegal fishing and sovereignty violations17. Resolving these disputes often requires bilateral agreements or international arbitration based on principles of equity15, 16.
  • Enforcement Challenges: The sheer size of an EEZ, extending up to 200 nautical miles, makes effective surveillance and enforcement costly and resource-intensive14. Many developing nations, in particular, may lack the naval and aerial capacity to adequately patrol their vast EEZs, leaving them vulnerable to illegal, unreported, and unregulated (IUU) fishing by foreign vessels12, 13. Studies suggest that while EEZs can deter unauthorized fishing, this deterrence is most effective in high-value fisheries where countries are incentivized to invest in enforcement11.
  • Sustainable Management Concerns: While EEZs grant sovereign rights for resource management, they do not guarantee sustainable practices. Coastal states may prioritize short-term economic gains over long-term environmental conservation, potentially leading to over-exploitation of resources within their own zones10. This highlights the ongoing challenge of balancing economic exploitation with ecological responsibility.
  • Impact on Freedom of Navigation: Although the UNCLOS preserves freedom of navigation in the EEZ, some interpretations or actions by coastal states can create tensions, particularly regarding military activities or intelligence gathering by foreign powers within another nation's EEZ.

Exclusive Economic Zone (EEZ) vs. Territorial Sea

The Exclusive Economic Zone (EEZ) and the territorial sea are both maritime zones where a coastal state exercises rights, but they differ fundamentally in the extent of sovereignty and the nature of those rights.

The territorial sea is an area of the sea that extends up to 12 nautical miles from a country's baseline. Within its territorial sea, a coastal state exercises full sovereignty, similar to its land territory. This means it has complete control over the waters, seabed, and airspace above. Foreign vessels generally have the right of "innocent passage" through the territorial sea, but this passage must not be prejudicial to the peace, good order, or security of the coastal state9.

In contrast, the Exclusive Economic Zone (EEZ) stretches beyond the territorial sea, extending an additional 188 nautical miles (for a total of 200 nautical miles from the baseline)8. Within the EEZ, a coastal state does not have full sovereignty. Instead, it possesses "sovereign rights" specifically for the purpose of exploring, exploiting, conserving, and managing natural resources, and for other economic activities like energy production6, 7. The surface waters of the EEZ are considered international waters, preserving the freedoms of navigation and overflight for all states. Therefore, the key distinction lies in the degree of control: full territorial sovereignty in the territorial sea versus specific economic rights in the EEZ.

FAQs

What is the primary purpose of an Exclusive Economic Zone?

The primary purpose of an Exclusive Economic Zone is to grant a coastal state exclusive rights to explore, exploit, conserve, and manage all natural resources within that maritime area, which includes both living resources like fish and non-living resources such as oil and gas5.

How far does an Exclusive Economic Zone extend from a country's coast?

An Exclusive Economic Zone generally extends up to 200 nautical miles (approximately 370 kilometers) from the coastal baseline. This distance includes the 12 nautical miles of the territorial sea and an additional 188 nautical miles beyond it.

Do other countries have the right to navigate or fly over an EEZ?

Yes, under the United Nations Convention on the Law of the Sea, the surface waters and airspace of an Exclusive Economic Zone generally remain open to international navigation and overflight. Other states retain the freedoms of navigation, overflight, and the laying of submarine cables and pipelines, provided these activities are lawful and respect the coastal state's economic rights4.

What happens if two countries' EEZs overlap?

When the coasts of two states are less than 400 nautical miles apart, their Exclusive Economic Zones may overlap. In such cases, the states are expected to delimit their maritime boundary through agreement, typically based on principles of international law and equity2, 3. If an agreement cannot be reached, international arbitration or other dispute resolution mechanisms may be used.

Are there any limitations to a country's rights within its EEZ?

While a country has significant rights within its Exclusive Economic Zone, these are primarily economic in nature and do not confer full sovereignty as in the territorial sea. The coastal state must also respect the rights and freedoms of other states in the EEZ, such as freedom of navigation and overflight1. Furthermore, the exercise of EEZ rights should align with the principles of sustainable resource management and environmental protection.