INTERNATIONAL TRADE

AND TRADE POLICY

Anvar Nizamov
UN Convention on Contracts
for the International Sale of
Goods
Plan
• Legal basis of international trade

• International organizations regulating international trading operations

• United Nations Convention on Contracts for the International Sale of

Goods

• Main provisions of the Vienna Convention

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 Legal framework for international trade:
1. Domestic legislation of countries

2. International treaties

3. International and national legal practices

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 Legal framework for international trade:
1. Domestic legislation of countries
- Some countries enshrine the norms of international law in sectoral acts of
various levels (Russia, France, Spain)
- Special laws in the field of international law (Austria, Hungary, Germany)
Uzbekistan: Law on foreign economic activity

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 Legal framework for international trade:
2. International treaties - agreements between states and other subjects of international law,
developed by harmonizing norms for the purpose of uniform regulation of relations.
Multilateral:
- Foreign trade activity
- International settlements
- International transportation of goods and passengers
- Intellectual Property Issues
Bilateral:
- General trade agreement
- Agreement on economic and technical cooperation
- Investment Protection Agreement
- Agreement on financial assistance, etc.
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 Legal framework for international trade:
3. Trade customs - the rules that have developed in the field of trade on the basis
of constant and uniform repetition of actual relations. Rules of conduct for
subjects of international law that have emerged as a result of a long uniform
practice and are recognized as an international legal norm
Signs:
- The established rule, stable and sufficient in its content
- A widely applied rule
- A rule not provided for by law
Examples application of trade customs:
– goods delivered in bulk may be rejected
- timber products (different approaches to volume calculation)
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 Instruments of international cooperation:
International conferences

International meetings

Permanent international bodies

International Mixed Commissions

International organizations

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 Instruments of international cooperation:
International conferences - a temporary body of states, designed to discuss the issues put before it and
make agreed decisions (for example, the Conference on the Law of the Sea). Used less and less.

International meetings meetings to solve specific problems.

For example, the annual meetings of the "Big Seven" to address global economic and political problems

Permanent international bodies - bodies of interaction between states with limited competence and a
simplified organizational structure. The basis is an agreement between member states (Council of Baltic
Sea States)

International Mixed Commissions are established on the basis of bilateral or broader agreements and are
designed to facilitate the implementation of these agreements. They adopt cooperation programs and
establish the procedure for their implementation. They have the right to make recommendations.

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 International organizations:
Organizations created on the basis of an international treaty or by decision of an
already existing organization for the purpose of analyzing, discussing and
resolving various trade issues
Organizations can be:
- General or limited composition
- General and special competence
- Intergovernmental organizations performing coordination functions,
performing separate supranational functions, supranational organizations
- International economic organizations of the UN system, international economic
organizations outside the UN, regional economic organizations
- The scope of regulation may vary.
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 International organizations in the field of trade:
- Regulate trade issues in general (WTO, UNCTAD, etc.)
- Regulate trade in one or more related commodities (OPEC, APEF, IOC, ISO,
etc.)
Functions:
- Development of uniform norms of conduct for states
- Study of the economic problems of the world economy
- Coordination of cooperation on specific issues
- Participation in the development of financial and credit relations
- Carrying out information and analytical work

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 GATT/WTO:
- Working since 1948
Principles:
- Tariff measures are recognized as the only acceptable means of foreign trade
regulation
- Fixing tariffs at the level determined by the contracting parties
- Progressive tariff cuts during negotiations
- Reciprocity in giving concessions
- Most favored nation principle
In 1995, the WTO became the successor to the GATT

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 GATT/WTO:
The task of the WTO is to liberalize world trade by consistently reducing
import duties and eliminating various non-tariff barriers.
Principles:
- The principle of most favored nation in mutual trade on a non-discriminatory
basis
- Mutual granting of national treatment to goods and services of foreign origin
- Trade Policy Transparency
- Dispute resolution through consultations and negotiations

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 UNCTAD:
Created in 1964 by decision of the UN Economic and Social Council
Objectives: promoting the development of world trade, ensuring a stable
world and equal mutually beneficial cooperation, development of
recommendations, conditions and mechanisms for the functioning of modern
relations, participation in the coordination of UN activities in the field of
economic development
Committees: Commodities, Finished Goods, Shipping, Hidden Items of Trade,
Trade Finance and Credit, Preferences, Commercial Technology Transfer

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 Other organs:
The United Nations Commission on International Trade Law (UNCITRAL)
established in 1966 is the central legal body in the UN system in the field of
international trade law

The International Institute for the Unification of Private Law (UNIDROIT) was
established in 1926 - an intergovernmental organization for the preparation of
projects and laws aimed at the unification of private law

The International Chamber of Commerce (ICC) was established in 1919 as an

advisory body for working with the UN. There are 15 different commissions in
the structure

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 Vienna Convention (1980) :
The result of many years of efforts to unify the legal regulation of international
trade
Scope of application: Both States Parties to the Convention
Does not regulate cases when:
- The goods are not purchased for business purposes
- The goods are purchased at auction or in the order of enforcement
proceedings
- The subject of the contract are securities, air and water vehicles, electricity
- Trade transactions

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Main provisions of the Vienna Convention (1980):
Form of contract (written)

Conclusion of the contract (offer and acceptance)

Rights and obligations of the parties (seller and buyer)

Violations of the obligations assumed by the parties and the method of protection

Exemption from liability for failure to fulfill an obligation

Consequences of termination of the contract

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 UNIDROIT treaty principles:
Meaning and content of the principles

Conclusion of contracts

Rights and obligations of the parties

Violation by the parties of their obligations

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 Conclusion:

Numerous organizations regulating international trade

The Vienna Convention is the main legal document in the field of international
trade

UNIDROIT principles are important for international activities

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