UNIT 1: CONCEPT OF INTERNATIONAL TRADE LAW

1.3 Importance

1. No country is solitarily standing; economy of one country is dependent on the economy

of another country. Eg. Global financial crisis.
2. Global integration of international trade.
3. Regional trade integration: Free trade areas, Economic Union: ASEAN, SAFTA,
NAFTA, EU.
4. A consequential fall out global integration of international trade law: UN Convention on
Contract for International Sale of Goods; UNCITRAL Model Law on Procurement;
UNCITRAL Model Law on Arbitration.
5. Governs trade between countries.
6. Rule based regulation of trade.
7. Prescribes corrective actions in case of breach.
8. Uniformity and Predictability.

1.4. Sources

1. Lex mercatoria
2. International conventions and treaties, which largely is codification of lex mercatoria.
 UNCISG
 The Warsaw Convention, 1929
 Hague-Visby Rules (International Convention for the Unification of Certain Rules
of Law relating to Bills of Lading, 1924)
 WTO Agreement
 SAFTA.
3. Rules framed by international organizations and bodies. Eg. International Chamber
of Commerce and UNCTAD (United Nations Conference on Trade and
Development) and UNCITRAL (United Nations Commission on International Trade
Law). These organizations are involved in harmonization and formulation of uniform
law texts.
 ICC Uniform Customs and Practice for Documentary Credits.
 ICC Incoterms.
 UNCTAD/ICC Rules for Multimodal Transport Documents.
 UNCITRAL Arbitrations Rules, UNCITRAL Model Law on Arbitration.
4. Domestic Statutes:
 Export-Import (Control) Act, 2013 (1956).
 Multimodal Transportation of Goods Act, 2063 (2006).
 Customs Act, 2064 (2007).
5. Judgments of international and national courts/arbitral tribunals.