1. International and World Trade Law
Chapter 8
International and World Trade Law
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2. International Law
International law is law that governs affairs between nations and that regulates transactions between individuals and businesses of different countries.
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3. Features of International Law
No single legislative source
No single world court to interpret
No world executive branch to enforce
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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”
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5. 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
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6. 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
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7. United Nations
An international organization created by a multilateral treaty in 1945
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8. U. N. Structure Governed by: The World Court 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.
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9. U. N. Agencies International Monetary Fund (IMF) World Bank
Financed by developed countries
Provides funding to developing countries for projects and humanitarian aid
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10. 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
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11. 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)
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12. 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.
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13. 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.
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14. Jurisdiction Forum selection Choice of law
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
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15. 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.
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16. Sovereign Immunity Doctrine
Act of a government in a foreign country is not subject to suit in the foreign country.
Foreign Sovereign Immunities Act (FSIA) of 1976
A foreign country is not immune from suits in the U.S. if the suit is based on commercial activity in the U.S. or directly affecting the U.S.
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17. 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.
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18. International Law Based on Religious Codes
Jewish Law and the Torah
Islamic Law and the Koran
Hindu Law and Dharmasastra
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19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.