A hearing on the merits was held (in China’s absence) in November 2015. On 12 July 2016, the Tribunal issued its Final Award. Inter alia, the Tribunal found that: (1) there was no legal basis for China to claim historic rights to resources within the sea areas falling within the ‘nine-dash line’; (2) none of the disputed Spratly Islands were capable of generating extended maritime zones (the Tribunal therefore declaring – without delimiting a boundary – that certain sea areas are within the exclusive economic zone of the Philippines); (3) China had violated the Philippines’ sovereign rights in its exclusive economic zone; and (4) China’s recent large-scale land reclamation and construction of artificial islands at seven features in the Spratly Islands had caused severe harm to the marine environment.
The award has huge implications for the South China Sea, the international law of the sea and the role of international arbitration in the resolution of major State-State disputes.
The award is unprecedented in its analysis of the legal status and entitlements of disputed features in the South China Sea. Its findings will affect multiple pending disputes around the world over the classification of small rocks and islands and the delimitation of maritime boundaries around them.
The award’s findings on the legal implications of Chinese reclamation and fishing activities and their impact on fragile ecosystems are also hugely significant. They lay down a clear marker for States around the world on the nature and extent of their due diligence obligations with respect to protection of the maritime environment.
The award is clearly binding on China as a matter of international law. It is to be hoped that both parties, other coastal States on the South China Sea and the international community as a whole will respect the award in accordance with the rule of law and that it will prove a positive step towards a lasting peaceful resolution of the situation.
To read the PCA summary, click here; for the Award, click here