Presentation on theme: "Major International Treaties in Regard to International Trade KOSTADIN KRASTANOV INA PANOV ADELINE GASPARD PETROV SORIN DANIIL GOLDIN KALOYAN IVANOV."— Presentation transcript:
Major International Treaties in Regard to International Trade KOSTADIN KRASTANOV INA PANOV ADELINE GASPARD PETROV SORIN DANIIL GOLDIN KALOYAN IVANOV
International Law International law is a body of law formed as a result of international customs, treaties and organizations. National law is the law of a particular nation International law may be public, creating standards for nations it may be private, establishing standards for private transactions that cross national borders
Sources of International Law International customs evidences of a general practice accepted as law. Treaties and International Agreement a treaty is an agreement or contract between two or more nations that must be authorized and ratified by the supreme power of each nation. International Organizations and Conferences refer to an organization composed mainly of officials of member nations and usually established by treaty.
Legal principles and doctrines The principle of comity one nation will defer and give effect to the laws and judicial decrees of another country as long as they are consistent with the law and public policy of the accommodating nation. The act of State Doctrine is a judicially created doctrine that provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.
Legal principles and doctrines The Doctrine of Sovereign Immunity when certain conditions are satisfied, the doctrine of sovereign immunity exempts foreign nations from the jurisdiction of the US courts. However, a foreign state is not immune from the jurisdiction of US courts when it has: waived its immunity either explicitly or by implication engaged in commercial activity within USA or in commercial activity outside the USA that has a direct effect in the USA committed a tort in the USA or has violated certain international laws.
Doing Business Internationally Export Foreign Production Licensing and Franchise
Export Direct Export A company signs a sales contract with a foreign purchases that provides for the conditions of shipment and payment for the goods. Indirect Export If sufficient business develops a company could assign employee as a foreign agent who would develop a marketing organization there. Distribution agreement When a company decides to appoint a distributor located in the foreign country.
Manufacturing Abroad Licensing Giving license to a foreign company to use a copyright, patent, trademarked intellectual property or trade secrets. Calls for payment of royalties(so many cents per unit produced; % of profits) The firm that has the license profits from an already built product, name, reputation.
Manufacturing Abroad Franchise A type of licensing, that allows the licensed party to use trademark, trade name or copyright, under certain conditions and limitations. The return for the franchiser is a fee, based on % of gross or net sales.
Manufacturing Abroad Wholly Owned Subsidiary Establishing a wholly owned subsidiary firm in a foreign country. Usually in Europe such ventures are in the form of societe anonyme, much similar to the US corporations. Under such subsidiary the facilities remain under the original company ownership, and total authority and control.
Regulation of specific business activities On investment On export control On import control To minimize trade barriers
Investment Investing abroad is risky Expropriation Remedies exist Lump-sum settlements Guaranties of compensation or insurances for citizens exist
Export controls U.S Constitution Art 1, sect. 9 No taxes but use of other devices Quotas Restriction Incentives and subsidies
Import controls Strict prohibition No illegal drugs, books insurrection against the U.S, no danger products, no products from enemies, no products that infringe the U.S patent Quotas and tariffs Antidumping duties International trade commission ( ITC) International trade administration ( ITA)
Minimizing trade barriers through trade agreements Trade barriers = restriction on import Elimination of barriers = Essential World trade organization ( WTO) EU ( treaty of Rome – 1957) Common market Free trade zone Council of ministers European court of justice
Minimizing trade barriers through trade agreements NAFTA ( 1994) Regional trading Canada, U.S, Mexico Elimination of tariffs and of citizenship requirement for licensing attorneys, accountants, physicians and other prof. CAFTA-DR ( 2005) Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua and U.S Reduce trade tariffs Improve market access
The Sarbanes – Oxley Act The Sarbanes-Oxley Act came into force in July 2002 and introduced major changes to the regulation of corporate governance and financial practice. The most important sections are usually considered to be 302, 401, 404, 409, 802 and 906. Generally, this act is designed to improve the quality and clarity of financial reporting and auditing of public companies
The Sarbanes – Oxley Act 302 Periodic statutory financial reports are to include certifications that: The signing officers have reviewed the report The report does not contain any material untrue statements or material omission or be considered misleading The financial statements and related information fairly present the financial condition and the results in all material respects
The Sarbanes – Oxley Act 401 Financial statements are published by issuers are required to be accurate and presented in a manner that does not contain incorrect statements or admit to state material information. These financial statements shall also include all material off-balance sheet liabilities, obligations or transactions.
The Sarbanes – Oxley Act 404 Issuers are required to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting. The registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial reporting.
The Sarbanes – Oxley Act 409 Issuers are required to disclose to the public, on an urgent basis, information on material changes in their financial condition or operations. These disclosures are to be presented in terms that are easy to understand supported by trend and qualitative information of graphic presentations as appropriate.
The Sarbanes – Oxley Act 802 This section imposes penalties of fines and/or up to 20 years imprisonment for altering, destroying, mutilating, concealing, falsifying records, documents or tangible objects with the intent to obstruct, impede or influence a legal investigation. This section also imposes penalties of fines and/or imprisonment up to 10 years on any accountant who knowingly and wilfully violates the requirements of maintenance of all audit or review papers for a period of 5 years
International Tort Claims Recently International application of tort liability has grown in significance as an increasing number of US plaintiffs are suing foreign entities for the torts committed overseas Often, these cases involve human rights violations by foreign governments. The Alien Tort Claims Act (ATCA) Adopted in 1789 and allows even foreign citizens to bring civil suits in US courts for injuries caused by violations of the law of the nations/ a treaty of the United States. Lately, it has been substantially used to bring legal actions against companies operating in other countries, e.g. in cases related to environmental destruction.
Case Study: Doe v. Unocal In September 1996, four Burmese villagers filed suit against Unocal and its parent company, the Union Oil Company of California under the ATCA rules. The suits alleged various human rights violations, including forced labor, wrongful death, false imprisonment, assault, intentional infliction of emotional distress and negligence, all relating to the construction of the Yadana gas pipeline project in Myanmar. In 1997, a U.S. federal district court in Los Angeles agreed to hear Doe v. Unocal. The Court ruled that corporations and their executive officers can be held legally responsible under the Alien Tort Claims Act for violations of international human rights norms in foreign countries, and that U.S. courts have the authority to adjudicate such claims
Case Study: Doe v. Unocal In 2000, the district court dismissed the case on the grounds that Unocal could not be held liable unless Unocal wanted the military to commit abuses, and that plaintiffs had not made this showing. However, Plaintiffs appealed this decision, and on September 18, 2002, a three-judge panel of the United States Court of Appeals for the Ninth Circuit reversed portions of the district courts decision, allowing the lawsuit against Unocal to go forward After that, the parties announced that they had reached a tentative settlement, including compensation for plaintiffs and provision for funds enabling plaintiffs and their representatives to develop programs to improve living conditions, health care and education and protect the rights of people from the pipeline region
Thats all folks! Apparently, the human body comprises about 70 percent of water, so without knowing your own rights, youre just a sort of vertical puddle