Exclusive economic zones

What Are Exclusive Economic Zones?

An Exclusive Economic Zone (EEZ) is an area of the sea that is outside a nation's territorial waters but within which the coastal state has special rights over the exploration and use of marine resources. This concept is a significant component of international law concerning oceanic boundaries, falling under the broader category of maritime law. Within its EEZ, a state exercises sovereign rights for the purpose of exploring, exploiting, conserving, and managing both living and non-living natural resources of the seabed, subsoil, and superjacent waters. This includes activities such as energy production from water, currents, and winds, as well as the establishment and use of artificial islands, installations, and structures. The state also has jurisdiction over marine scientific research and the protection and preservation of the marine environment within its exclusive economic zone.

History and Origin

The concept of the exclusive economic zone evolved from increasing global awareness of the value of marine resources and the desire of coastal states to control them beyond their traditional territorial limits. Historically, national control extended only to a narrow band of territorial waters, typically three nautical miles, with the high seas being open to all nations for fishing and other activities. However, as fishing technologies advanced and the potential for offshore oil and gas exploitation became evident in the mid-20th century, many states began to unilaterally claim broader zones of control.

This led to significant international disputes and a recognized need for a comprehensive legal framework. The Third United Nations Conference on the Law of the Sea (UNCLOS III), which convened from 1973 to 1982, was a monumental effort to codify and develop international maritime law. The conference ultimately produced the United Nations Convention on the Law of the Sea (UNCLOS), adopted in 1982. This convention, which entered into force in 1994, established the 200-nautical-mile exclusive economic zone as a recognized and standardized maritime zone, providing coastal states with extensive economic rights while preserving certain freedoms of navigation and overflight for other nations. The Convention defines a comprehensive regime for the world's oceans, establishing rules for the allocation of states' rights and jurisdiction in maritime spaces and the management of their resources.⁴

Key Takeaways

• An Exclusive Economic Zone (EEZ) extends 200 nautical miles from a coastal state's baseline, granting it special rights over resource exploration and exploitation.
• Within its EEZ, a state has sovereign rights for managing living and non-living resources, including fishing, oil and gas, and renewable energy.
• Coastal states also have jurisdiction over marine scientific research and environmental protection within their exclusive economic zones.
• The concept of the EEZ was formalized by the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
• While granting extensive economic rights, the EEZ still allows for freedoms of navigation and overflight for other nations.

Interpreting the Exclusive Economic Zone

The framework of an Exclusive Economic Zone (EEZ) is fundamentally about the balance of rights and responsibilities. For a coastal state, the EEZ represents a significant extension of its economic influence and control beyond its maritime boundaries. This control translates into the exclusive right to conduct and regulate economic activities such as fishing, offshore drilling for oil and gas, and the development of renewable energy sources like wind and wave power. It also empowers the state to undertake marine scientific research and implement measures for environmental protection within this expansive area. The interpretation revolves around managing the tension between a state's imperative for resource allocation and the international community's interest in maintaining navigational freedoms.

For other nations, the EEZ is distinct from territorial waters because it preserves the freedom of navigation and overflight, as well as the freedom to lay submarine cables and pipelines. This means military vessels and commercial ships of other countries can pass through an EEZ without requiring permission, provided their passage is not prejudicial to the peace, good order, or security of the coastal state.

Hypothetical Example

Consider a hypothetical island nation, "Coralia," heavily reliant on seafood for its economy and food security. Before the concept of the Exclusive Economic Zone, fishing vessels from various countries would compete for fish stocks right up to Coralia's narrow territorial waters, leading to overfishing and depletion.

With the establishment of an EEZ, Coralia now has exclusive rights to manage all fish stocks within 200 nautical miles of its coast. This allows Coralia's government to implement a comprehensive fisheries management plan. They can set quotas for different species, establish fishing seasons, restrict certain types of gear, and issue licenses to local and, if desired, a limited number of foreign vessels. This control over their marine resources directly contributes to their economic development by ensuring sustainable harvests, protecting local livelihoods, and potentially creating revenue through licensing fees. Coralia can invest in research to understand fish migration patterns and ecosystem health, ensuring the long-term viability of their seafood industry.

Practical Applications

Exclusive Economic Zones have profound practical applications across various sectors, impacting national economies and global interactions. In investing and markets, the rights conferred by an EEZ directly influence the valuation of companies involved in offshore resource extraction, such as oil and gas exploration firms, deep-sea mining operations, and commercial fishing enterprises. The presence of significant mineral or energy deposits within a country's EEZ can attract substantial foreign investment and shape its energy independence strategies.

Beyond resource exploitation, EEZs are crucial for sustainable development initiatives. Coastal states can regulate and enforce environmental laws, manage marine protected areas, and conduct marine scientific research crucial for understanding climate change impacts and biodiversity. For instance, the World Trade Organization (WTO) has been actively negotiating agreements to curb harmful fisheries subsidies, particularly those that encourage overfishing within or beyond exclusive economic zones. According to the Peterson Institute for International Economics, these negotiations aim to ban subsidies for deep-sea and distant water fishing that occurs in EEZs, recognizing the sovereign rights of coastal states while addressing global concerns about dwindling fish stocks.³

Limitations and Criticisms

Despite their widespread adoption and benefits, Exclusive Economic Zones face certain limitations and criticisms. One primary challenge lies in the delimitation of maritime boundaries between neighboring states, particularly where coasts are adjacent or opposite. Overlapping claims can lead to prolonged and complex dispute resolution processes, sometimes escalating to international courts. The International Court of Justice, for example, has heard cases concerning maritime delimitation, such as the dispute between Somalia and Kenya regarding their maritime spaces in the Indian Ocean.² Resolving these disputes often requires intricate legal interpretations of UNCLOS provisions and customary international law, impacting the clear definition of a state's property rights over marine areas.

Another criticism centers on the potential for overexploitation of resources within an EEZ if a coastal state lacks the capacity or political will for effective management. While the EEZ grants exclusive rights, it also imposes the responsibility for conservation. Without robust regulatory frameworks and enforcement, a state's control over its EEZ could paradoxically lead to the depletion of its own resources. Furthermore, critics argue that the EEZ framework, while beneficial for coastal states, might disadvantage landlocked countries or those with limited coastlines by restricting their access to historical fishing grounds or deep-sea resources.

Exclusive Economic Zones vs. Territorial Waters

The terms Exclusive Economic Zone (EEZ) and territorial waters are often confused, but they represent distinct maritime zones with different legal implications under international law.

The key distinction lies in the degree of sovereignty. Within territorial waters, a state has virtually complete sovereignty, similar to its land territory, only limited by the right of innocent passage for foreign vessels. The coastal state can fully regulate and enforce its laws. In contrast, an Exclusive Economic Zone grants a state specific, functional sovereign rights primarily related to economic activities and environmental protection. While a state controls the resources within its EEZ, it does not have full sovereignty in the same way it does over its territorial sea, and other nations retain high seas freedoms such as navigation and overflight.

FAQs

What is the primary purpose of an Exclusive Economic Zone?

The primary purpose of an Exclusive Economic Zone is to grant coastal states special sovereign rights over the exploration, exploitation, conservation, and management of natural resources within a specified maritime area, thereby fostering economic development and ensuring resource security.

How is the breadth of an EEZ measured?

An EEZ extends from the baselines from which the breadth of the territorial sea is measured, out to a maximum distance of 200 nautical miles. This 200-nautical-mile limit includes the 12-nautical-mile territorial sea.

Can other countries fish in an EEZ?

Generally, no. The coastal state has exclusive rights to the living resources within its EEZ, including fish. However, the coastal state may grant licenses or enter into trade agreements with other countries to allow them to fish in its EEZ, especially if the coastal state does not have the capacity to harvest the entire allowable catch.

What are the rights of a coastal state over its continental shelf beyond 200 nautical miles?

Beyond the 200-nautical-mile Exclusive Economic Zone, a coastal state may claim sovereign rights over its continental shelf for the purpose of exploring and exploiting its natural resources, provided the shelf naturally extends beyond that limit and meets specific geological criteria outlined in UNCLOS. This extended continental shelf claim typically does not grant rights over the water column or its living resources.

What international body oversees disputes related to EEZs?

Disputes concerning Exclusive Economic Zones and other maritime issues can be brought before various international tribunals, primarily the International Court of Justice (ICJ) or the International Tribunal for the Law of the Sea (ITLOS). These bodies interpret the provisions of the United Nations Convention on the Law of the Sea to resolve disagreements between states.¹