The High Court noted, however, that the doctrine does not protect any activity or function that a state might exercise. So if entities that can enter into “less than sovereign” treaties, how about federal states?  Municipalities also have a greater responsibility on these issues and are increasingly present on the international scene. While this document acknowledges this reality, it will focus only on the federal states. To the extent that cities are “creatures of the state” and not of the federated states, their formal powers depend on the powers that the unifying state possesses and can delegate. In addition, a city could benefit from a special status equivalent to a federal state within a federal state and would therefore be treated as such. Most early intergovernmental pacts resolved border conflicts, but since the early 20th century, compacts have increasingly been used as a tool for government cooperation.  In some cases, an agreement will create a new multi-governmental authority to manage or improve some shared resources, such as a seaport or public transport infrastructure. While the Supreme Court considers the interests of states that are not parties to an intergovernmental pact to be an important inquiry into whether the intergovernmental pact is contrary to the compact clause, these interests have so far not proven to be devices. In the us Steel Corp.
v. The Multistate Tax Commission, the Tribunal found that an intergovernmental pact to facilitate the collection and allocation of public taxes is not contrary to the Compact clause.  The Court of Justice has indicated that the effect of a pact on un condensed conditions would not be a problem under the “Compact” clause, unless the pact puts pressure on uncompensated states that have breached the trade clause or privileges and immunities.  In the northeast of Bancorp. v. The Governing Council, the Court of Justice stressed that congressional approval would be necessary for a pact that would increase the political power of condensation of states “at the expense” of non-compressive states.   Multistate Tax Compact Art Model. 1, www.mtc.gov/The-Commission/Multistate-Tax-Compact (last time on June 19, 2018). van Ert Gibran, “The legal character of provincial agreements with foreign governments,” Law Book, 24, 2001.
Government initiatives that are products of expertise, means and incentives, and the misdirection of power and expertise weaken the ability of federations to act reasonably in international affairs if their central authorities do not allow the federal states to take their place in the decision-making process.