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How Trump's Hormuz gambit could sink the treaty that ensures free trade

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United States President Donald Trump's innate inability to empathise with others and lack of intelligence to foresee consequences are likely to hand Iran a long-term financial advantage, but more importantly threaten the treaty that has been the most productive of peace and prosperity in recent history - the United Nations Convention on the Law of the Sea.

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The tit-for-tat breaches of the US-Iran 60-day ceasefire in the past few days certainly point that way. Let me explain.

Of 193 members of the UN, 44 are landlocked. The other 149 have coastlines linking each of their coastlines to the other 148 countries' coastlines such that they can as a practical matter travel to those other nations by boat or ship with no natural barrier or no requirement to use easily blocked roads or railways.

The UN convention took eight years to negotiate in the 1970s. It was a triumph of diplomacy and law over the assertion of power and force. It resulted in one of the greatest trade-offs in history between powerful nations, on one hand, and less powerful nations, on the other.

In short, before the convention, powerful trading nations saw their economic interests in both the unfettered exploitation of the resources of the oceans and in having freedom of navigation across the oceans to help free trade, but ultimately they were willing to forgo the former in order to secure the latter.

The trade-off was enormous. Rich, powerful nations thought that freedom of navigation across the world's oceans was so important for trade and hence prosperity that they were willing to grant poor and less powerful nations significant exclusive rights to their adjacent oceans in return for that freedom.

The question posed by the negotiators was how to achieve peace and greater prosperity. The answer was negotiation and compromise.

Each nation, even the militarily and economically weak, got the exclusive rights to all the ocean's resources, particularly fishing and mining, up to 200 nautical miles from their shore and the total sovereign rights of territorial waters up to 12 nautical miles from their shore.

In return vessels from any nation, especially militarily strong and rich trading nations could sail anywhere........

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