International trade law
Encyclopedia
International trade law includes the appropriate rules and customs for handling trade between countries. However, it is also used in legal writings as trade between private sectors, which is not right. This branch of law is now an independent field of study as most governments has become part of the world trade, as members of the World Trade Organization
(WTO). Since the transaction between private sectors of different countries is important part of the WTO activities, this latter branch of law is now very important part of the academic works and is under study in many universities across the world.
. The latter could be said to encompass not only WTO law, but also law governing the international monetary system
and currency
regulation, as well as the law of international development
.
The body of rules for transnational trade in the 21st century derives from medieval commercial laws called the lex mercatoria
and lex maritima — respectively, "the law for merchants on land" and "the law for merchants on sea." Modern trade law (extending beyond bilateral treaties) began shortly after the Second World War, with the negotiation of a multilateral treaty to deal with trade in goods: the General Agreement on Tariffs and Trade
(GATT).
International trade law is based on theories of economic liberalism
developed in Europe
and later the United States
from the 18th century onwards.
, a formal international organization to regulate trade, was established. It is the most important development in the history of international trade law.
The purposes and structure of the organization is governed by the Agreement Establishing The World Trade Organization, also known as the "Marrakesh Agreement". It does not specify the actual rules that govern international trade in specific areas. These are found in separate treaties, annexed to the Marrakesh Agreement.
Scope of WTO :
(a) provide framework for administration and implementation of agreements;
(b) forum for further negotiations;
(c) trade policy review mechanism;and
(d) promote greater coherence among members economics policies
Principles of the WTO:
(a) principle of non-discrimination (most-favoured-nation treatment obligation and the national treatment obligation)
(b) market access (reduction of tariff and non-tariff barriers to trade)
(c) balancing trade liberalisation and other societal interests
(d) harmonisation of national regulation (TRIPS agreement, TBT agreement, SPS agreement)
and subsidies
.
:Category:United States federal trade legislation
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
(WTO). Since the transaction between private sectors of different countries is important part of the WTO activities, this latter branch of law is now very important part of the academic works and is under study in many universities across the world.
Overview
International trade law should be distinguished from the broader field of international economic lawInternational economic law
International economic law is a field of international law that regulates the behavior of states, international organizations and firms operating in the international arena...
. The latter could be said to encompass not only WTO law, but also law governing the international monetary system
Monetary system
A monetary system is anything that is accepted as a standard of value and measure of wealth in a particular region.However, the current trend is to use international trade and investment to alter the policy and legislation of individual governments. The best recent example of this policy is the...
and currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
regulation, as well as the law of international development
International development
International development or global development is a concept that lacks a universally accepted definition, but it is most used in a holistic and multi-disciplinary context of human development — the development of greater quality of life for humans...
.
The body of rules for transnational trade in the 21st century derives from medieval commercial laws called the lex mercatoria
Lex mercatoria
Lex mercatoria is the body of commercial law used by merchants throughout Europe during the medieval period. It evolved similar to English common law as a system of custom and best practice, which was enforced through a system of merchant courts along the main trade routes. It functioned as the...
and lex maritima — respectively, "the law for merchants on land" and "the law for merchants on sea." Modern trade law (extending beyond bilateral treaties) began shortly after the Second World War, with the negotiation of a multilateral treaty to deal with trade in goods: the General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...
(GATT).
International trade law is based on theories of economic liberalism
Economic liberalism
Economic liberalism is the ideological belief in giving all people economic freedom, and as such granting people with more basis to control their own lives and make their own mistakes. It is an economic philosophy that supports and promotes individual liberty and choice in economic matters and...
developed in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and later the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
from the 18th century onwards.
World Trade Organization
In 1995, the World Trade OrganizationWorld Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
, a formal international organization to regulate trade, was established. It is the most important development in the history of international trade law.
The purposes and structure of the organization is governed by the Agreement Establishing The World Trade Organization, also known as the "Marrakesh Agreement". It does not specify the actual rules that govern international trade in specific areas. These are found in separate treaties, annexed to the Marrakesh Agreement.
Scope of WTO :
(a) provide framework for administration and implementation of agreements;
(b) forum for further negotiations;
(c) trade policy review mechanism;and
(d) promote greater coherence among members economics policies
Principles of the WTO:
(a) principle of non-discrimination (most-favoured-nation treatment obligation and the national treatment obligation)
(b) market access (reduction of tariff and non-tariff barriers to trade)
(c) balancing trade liberalisation and other societal interests
(d) harmonisation of national regulation (TRIPS agreement, TBT agreement, SPS agreement)
Trade in goods
The GATT has been the backbone of international trade law throughout most of the twentieth century. It contains rules relating to "unfair" trading practices — dumpingDumping (pricing policy)
In economics, "dumping" is any kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market...
and subsidies
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
.
Trade and Intellectual Property
The World Trade Organisation Trade Related Intellectual Property Rights (TRIPS) agreement required signatory nations to raise intellectual property rights (also known as intellectual monopoly privileges). This arguably has had a negative impact on access to essential medicines in some nations.Dispute settlement
Most prominent in the area of dispute settlement in international trade law is the WTO dispute settlement system. The WTO dispute settlement body is operational since 1995 and has been very active since then with 369 cases in the time between 1 January 1995 and 1 December 2007. Nearly a quarter of disputes reached an amicable solution, in other cases the parties to the dispute resorted to adjudication. The WTO dispute settlement body has exclusive and compulsory jurisdiction over disputes on WTO law (Article 23.1 Dispute Settlement Understanding).See also
- World Trade OrganizationWorld Trade OrganizationThe World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
:Category:United States federal trade legislation
- International tradeInternational tradeInternational trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
External links
- International Bar Association
- International Trade Center - a UN organization
- Trade Law Centre for Southern Africa
- World Trade Institute - at the University of Berne
- International Trade Debates and Iran
- World Trade Organization - WTO
- Federation of International Trade Associations
- Does Sales-Only Apportionment Violate International Trade Rules? Report suggesting that sales-only apportionment may violate international trade rules that prohibit export sales.