Beyond Adjudication: Lump Sum Agreements, Economic Hostages and Market Access

Abstract Lump sum agreements have been signed since the 17th century and were the most important international law instrument used to settle international claims during the 20th century. As instruments of diplomatic protection, the agreements required governments to make active judgments about how to balance the demands of individual claimants against broader political and economic interests. Based on archival materials and a compilation of almost 400 lump sum agreements, this article shows how they were typically negotiated as alternatives to adjudication and often involved claimant states using frozen assets or market access to induce settlements. In addition to providing a fuller account of this critical piece of international claims infrastructure, the findings are notable in light of the current backlash against international courts and tribunals as well as the resurgence of managed trade where market access is linked to disputes in other areas.