Transnational commercial law treaty design, interpretation, and compliance

Abstract This article advances a framework for evaluating treaty compliance in transnational commercial law, situating such treaties at the strict, rule-based end of a compliance continuum. It argues that the economic function of commercial law treaties—principally, transaction risk reduction—is incompatible with open-textured drafting and its resulting wide range of permissive interpretation. Compliance is therefore not merely a treaty obligation but also a structural prerequisite to the economic benefits that the treaty is designed to produce. The Cape Town Convention on International Interests in Mobile Equipment and Its Aircraft Protocol are examined as the paradigm case. The article concludes by identifying design elements and emerging analytical tools—including artificial intelligence-assisted assessment and game-theoretic modelling—capable of improving compliance outcomes in future instruments.