Chapter 8 International and World Trade Law International

Chapter 8 International and World Trade Law

International Law n International law is law that governs affairs between nations and that regulates transactions between individuals and businesses of different countries. 8 -2

Features of International Law n n n No single legislative source No single world court to interpret No world executive branch to enforce 8 -3

United States and Foreign Affairs n Foreign Commerce Clause n n Vests Congress with the power “to regulate commerce with foreign nations” Treaty Clause n 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” 8 -4

Sources of International Law n Treaties and conventions n n 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 n Consistent, recurring practices between two or more nations over a period of time that have become recognized as binding 8 -5

Sources of International Law n General principles of law n n Principles of law recognized by civilized persons Judicial decisions and teachings n Judicial decisions and writings of the most qualified legal scholars of the various nations involved in a dispute 8 -6

United Nations n An international organization created by a multilateral treaty in 1945 8 -7

U. N. Structure n Governed by: n The General Assembly n n The Security Council n n Composed of 15 member nations The Secretariat n n Composed of all member nations Administers day-to-day operations The World Court n Judicial branch of the U. N. 8 -8

U. N. Agencies n n International Monetary Fund (IMF) World Bank n n Financed by developed countries Provides funding to developing countries for projects and humanitarian aid 8 -9

Regional International Organizations n European Union n Opens borders for trade among member nations Eliminates customs duties among member nations North American Free Trade Agreement (NAFTA) n Removes or reduces trade barriers between U. S. , Mexico, and Canada 8 -10

Regional International Organizations n n 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) 8 -11

World Trade Organization (WTO) n n Created by General Agreement of Tariffs and Trade (GATT) WTO dispute resolution n n 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. 8 -12

National Courts n n Most international trade disputes are heard by national courts of individual nations. Jurisdiction may be determined by terms of the contract between parties. 8 -13

Jurisdiction n Forum selection n n Designates the judicial or arbitral forum that will hear and decide the case Choice of law n Designates the law to be applied by the court or arbitrator in deciding the case 8 -14

Act of State Doctrine n Act of state doctrine n An act of a government in its own country is not subject to suit in another country’s courts. 8 -15

Sovereign Immunity Doctrine n Sovereign immunity n n Act of a government in a foreign country is not subject to suit in the foreign country. Foreign Sovereign Immunities Act (FSIA) of 1976 n 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. 8 -16

International Arbitration n n Nonjudicial method of dispute resolution where a neutral third party decides the case Parties agree to be bound by the arbitrator’s decision. 8 -17

International Law Based on Religious Codes n n n Jewish Law and the Torah Islamic Law and the Koran Hindu Law and Dharmasastra 8 -18

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