Lecture 4:

Global strategic complexities

International Trade Law
 Contents

I. Explaining the concept

II. Main sources of international trade laws

III. Examples of international trade law

topics

IV. World Trade Organization

 I. Explaining the
concept

• International trade refers to the exchange of goods or

services along international borders. This type of trade
allows for a greater competition and more competitive
pricing in the market. The competition results in more
affordable products for the consumer. The exchange of
goods also affects the economy of the world as dictated
by supply and demand, making goods and services
obtainable which may not otherwise be available to
consumers globally. (Business Dictionary Website, 2017)
 II. Main sources

• Public international law governs relationships

between national governments and
intergovernmental organizations.
– WTO is the only international body dealing with rules
of trade between nations.
– Rules on private law commercial relationships
involving different countries
– Conventions, model laws, legal guides adopted by
international organizations (UNCITRAL, UNIDROIT,
UNCTAD) and the Hague Conventions on Private
International law related to contracts, recognition of
judgments, commercial arbitration and sales of
goods.
 II. Main sources
(cont.)
• International organizations and institutions
involved in international trade and international
economic law:
– World Trade Organization
– United Nations Conference on Trade and Development
(UNCTAD)
– International Trade Centre
– United Nations Commission on International Trade Law
(UNCITRAL)
– World Bank
– International Monetary Fund
– International Chamber of Commerce
– APEC
– MERCOSUR
– ANDEAN Community
– ASEAN
 III. Examples of
International Trade Law topics
• International sale of goods
– Contract drafting
– Agency arrangements
– Exclusive sale arrangements
• Negotiable instruments and banker’s commercial
credits
• Business activities pertaining to international trade
• Insurance
• Transportation (carriage of goods by sea, air, road
and rail, inland waterways)
• Industrial properties and copyright
• Commercial arbitration.
 IV. World Trade
Organization (WTO)
• Location: Geneva, Switzerland
• Established: 1 January 1995
• Created by: Uruguay Round negotiations (1986-94)
• Membership: 164 countries on 29 July 2016
• Budget: 197 million Swiss francs for 2015
• Secretariat staff: 640
• Head: Roberto Azevêdo (Director-General)

Source: WTO Website, 2017

 IV. World Trade
Organization (cont.)
• The World Trade Organization (WTO) is the only
global international organization dealing with the
rules of trade between nations. At its heart are the
WTO agreements, negotiated and signed by the
bulk of the world’s trading nations and ratified in
their parliaments. The goal is to ensure that trade
flows as smoothly, predictably and freely as
possible.
• The WTO has many roles
– It operates a global system of trade rules
– It acts as a forum for negotiating trade agreements
– Its settles trade disputes between its members
– It supports the needs of developing countries.