From Regulation To Voluntarism: Discursive Power In Globally Fragmented Production

Abstract

This article examines the transformation of production structures from nationally bounded model-Fordism-to a global fragmented model-global value chainsfocusing on the role of private international law in governance of global value chains. By analysing the evolution of sustainable consumption and production (SCP) and corporate accountability narratives, it shows how regulatory obligations were reframed as voluntary commitments, reinforcing the regulatory function of contracts. It further shows that, central to those narratives, is the principle of party autonomy and freedom of contract, which, when left unchecked, enable transnational corporations with greater bargaining power to impose unilateral terms such as choice of law and choice of private dispute resolution mechanisms, over their suppliers. These practices have prioritised corporate interests over collective concerns, exacerbating inequalities within global value chains.

Keywords: Global Value Chains, Transnational Contract Governance, Party Autonomy, Freedom of Contract