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.
Since the transaction between private sectors of different countries is an important part
of the WTO activities, this latter branch of law is now a 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 law. 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 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.
International trade law is based on theories of economic liberalism developed in Europe
and later the United States from the 18th century onwards.
International Trade Law is an aggregate of legal rules of “international legislation”
and new lex mercatoria, regulating relations in international trade. “International legislation”
– international treaties and acts of international intergovernmental organizations regulating
relations in international trade. lex mercatoria - "the law for merchants on land". Alok Narayan
defines "lex mercatoria" as "any law relating to businesses" which was criticised by Professor
Julius Stone. and lex maritima - "the law for merchants on sea. Alok in his recent article
criticised this definition to be "too narrow" and "merely-creative". Professor Dodd and
Professor Malcolm Shaw of Leeds University supported this proposition.
World Trade Organization In 1995, the World Trade Organization, 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; forum for further negotiations; trade policy review mechanism;and
promote greater coherence among members economics policies
Principles of the WTO: (a) principle of non-discrimination market
access balancing trade liberalisation and other societal interests harmonisation of
national regulation 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 — dumping and subsidies.
Trade and intellectual property The World Trade Organisation Trade Related
Aspects of Intellectual Property Rights agreement required signatory nations to raise intellectual
property rights. This arguably has had a negative impact on access to essential medicines in
some nations. Cross-border transactions
Cross-border operations are subject to taxation by more than one country. Commercial activity
that occurs among several jurisdictions or countries is called a cross-border transaction.
Those involved in any international business development or international trade should
be knowledgeable in tax law, as every country enforces different laws on foreign businesses.
International tax planning ensures that cross-border businesses stay tax compliant and avoid or
lessen double taxation. 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.
See also World Trade Organization
Category:United States federal trade legislation International trade
Notes
References van den Bossche, Peter. The Law and Policy
of the World Trade Organization - Text, Cases and Materials. Maastricht University: Cambridge
University Press. p. 917. ISBN 978-0-521-72759-4.
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. B.H. Druzin. "Law without the State: the Spontaneous
Emergence of Commercial Legal Order," Georgetown Journal of International Law 41: 559-620.