Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-1 Chapter 5 International and World Trade Law

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-2 International Law International law is law that governs affairs between nations and that regulates transactions between individuals and businesses of different countries.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-3 Features of International Law No single legislative source No single world court to interpret No world executive branch to enforce

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-4 United States and Foreign Affairs Foreign Commerce Clause Vests Congress with the power “to regulate commerce with foreign nations” Treaty Clause States that the President “shall have power, by and with the advice and consent of the Senate, to make treaties, provided two-thirds of the senators present concur”

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-5 Sources of International Law General principles of law Principles of law recognized by civilized persons Judicial decisions and teachings Judicial decisions and writings of the most qualified legal scholars of the various nations involved in a dispute

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-6 Sources of International Law Treaties and conventions Agreements or contracts between two or more nations that are formally signed by an authorized representative and ratified by the supreme power of each nation Custom Consistent, recurring practices between two or more nations over a period of time that have become recognized as binding

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-7 United Nations An international organization created by a multilateral treaty in 1945

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-8 U. N. Structure Governed by: The General Assembly Composed of all member nations The Security Council Composed of 15 member nations The Secretariat Administers day-to-day operations The World Court Judicial branch of the U.N.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 8-9 U. N. Agencies International Monetary Fund (IMF) World Bank Financed by developed countries Provides funding to developing countries for projects and humanitarian aid

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Regional International Organizations European Union Opens borders for trade among member nations Eliminates customs duties among member nations North American Free Trade Agreement (NAFTA) Removes or reduces trade barriers between U.S., Mexico, and Canada

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Regional International Organizations Association of Southeast Asian Nations (ASEAN) Central America Free Trade Agreement (CAFTA) Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) Free Trade Area of the Americas (FTAA)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall World Trade Organization (WTO) Created by General Agreement of Tariffs and Trade (GATT) WTO dispute resolution Adopted a “judicial” mode 3-member panel hears a dispute and issues a panel report. Report is referred to the dispute settlement body of the WTO. An appellate body hears appeals. WTO can order sanctions for noncompliance.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall National Courts Most international trade disputes are heard by national courts of individual nations. Jurisdiction may be determined by terms of the contract between parties.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Jurisdiction Forum selection Designates the judicial or arbitral forum that will hear and decide the case Choice of law Designates the law to be applied by the court or arbitrator in deciding the case

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Act of State Doctrine Act of state doctrine An act of a government in its own country is not subject to suit in another country’s courts.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall International Arbitration Nonjudicial method of dispute resolution where a neutral third party decides the case Parties agree to be bound by the arbitrator’s decision.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall International Law Based on Religious Codes Jewish Law and the Torah Islamic Law and the Koran Hindu Law and Dharmasastra