An Exclusive Economic Zone (EEZ) is a maritime zone established by the United Nations Convention on the Law of the Sea (UNCLOS), granting coastal states special rights regarding exploration and use of marine resources. This article aims to explain the concept of EEZ in easy-to-understand terms for learners in accounting and finance.
Table of Contents
Definition of Exclusive Economic Zone
Definition
An Exclusive Economic Zone (EEZ) refers to an area beyond a country’s territorial sea that extends up to 200 nautical miles (approximately 370 kilometers) from its coastline. Within this zone, the coastal state has exclusive rights and sovereign jurisdiction over natural resources and economic activities, including fishing, mineral exploration, and energy production.
Key Points:
- Exclusive Rights: Coastal states have exclusive rights to exploit, conserve, and manage natural resources within their EEZ.
- Sovereign Jurisdiction: They exercise sovereign rights for the purpose of exploring, exploiting, conserving, and managing both living and non-living resources.
- UNCLOS Framework: The EEZ is defined and regulated under the framework of UNCLOS, an international treaty adopted in 1982.
Features and Characteristics of EEZ
Legal and Geographical Scope
- Legal Framework: The concept of EEZ was established to balance coastal state rights and international freedoms of navigation and overflight.
- Geographical Extension: The EEZ extends up to 200 nautical miles from the baseline from which the territorial sea is measured, except where the maritime entitlements of neighboring or opposite states overlap.
Importance of Exclusive Economic Zones
Economic and Environmental Significance
- Resource Management: EEZs are vital for managing and conserving marine resources, including fish stocks, minerals, and hydrocarbons.
- Economic Activities: Coastal states benefit economically from activities such as fishing, oil and gas exploration, and renewable energy projects within their EEZs.
Example of Exclusive Economic Zone
Practical Illustration
Consider Country X, which has a coastline along the Atlantic Ocean. According to UNCLOS, Country X’s EEZ extends 200 nautical miles from its coastline. Within this zone, Country X has exclusive rights to fish, drill for oil, and conduct marine research. This means other countries cannot undertake these activities without Country X’s permission within its EEZ.
International Relations and EEZs
Diplomatic and Legal Aspects
- UNCLOS Compliance: Countries adhere to UNCLOS regulations to avoid disputes over overlapping EEZs or maritime boundaries.
- Cooperation and Conflict: EEZs can be a source of cooperation or conflict among neighboring states, especially where maritime boundaries are disputed or resource-rich areas are contested.
Challenges and Management of EEZs
Environmental and Governance Issues
- Environmental Protection: Managing EEZs sustainably to avoid overexploitation of fisheries and environmental degradation is a significant challenge.
- Governance and Surveillance: Coastal states must invest in surveillance and enforcement measures to combat illegal fishing, piracy, and other illicit activities within their EEZs.
Conclusion
Understanding the Exclusive Economic Zone (EEZ) is crucial for learners in accounting and finance as it underscores the economic, environmental, and geopolitical dimensions of maritime resource management. By delineating rights and responsibilities, EEZs contribute to sustainable development, international cooperation, and maritime security. Coastal states utilize their EEZs to harness marine resources responsibly while navigating diplomatic and legal frameworks under UNCLOS. As learners grasp the complexities of EEZs, they gain insights into the intersection of law, economics, and environmental stewardship in the global maritime domain.