International Commercial Law
International commercial law is the law regulating trade between different countries in the world. It acts as a regulatory agency and harmonizes all trade agreements between nations in the international trade that is made up of trade agreements between members subject to international trade. The main objectives of international trade law is to ensure that there is international trade relationship, helping in resolving disputes affecting trade, enforce the use of a common goal, provide the most efficient way of conducting international business, regulate trade and promote fair and free trade in the ...view middle of the document...
The paper analyses issues relating to commercial law and its arguments are based on treaties (agreements) and any other relevant source.
It can be said that commercial law regulates all commercial transactions. The rules and regulations offered by institutions of commercial law provide a framework for settling disputes among trade partners. International commercial law facilitates voluntary exchanges that increase social welfare (Guzman & Sykes 2007). In international commercial law, arbitration is vital in which it provides the contracting parties with unrivaled freedom in selecting the applicable law. The international commercial law is based on the law of contracts. Article III of GATT indicates that a country should not pass a law or adopt tax policies that are meant to protect country domestic products in an international trade agreement. This means that in setting the new policies or tax measures a country should be guided by international trade agreements policies. In case a country violates such a trade agreement then a country can file for breach of contract since it is against international laws. This is meant to prevent a country from discriminating against other countries' product in favor of their own. If a country goes against this policy the other cannot get remedies like reverse of such laws. However, the trade agreements do not bar a country from imposing policies in situations where it is not protecting its domestic products, directly favoring one country over the other in the international trade or differentiating its products.
The successive rounds of trade negotiations under the General Agreements on Tariffs and Trade (GAAT) have resulted in significant global trade liberalization (Evans 2012). However, there has been an acceleration toward regional integration in different parts of the world. The early attempts to establish regional trade agreements were met with little success especially among the developing countries. In the recent years, there has been a significant growth in the number of Regional Trade Agreements being formed across different regions in the world. For example, by May 2003 184 Regional Trade Agreements had been formed. One of the most prominent examples of regional integration is the establishment of the European Common Market in 1958, which has now evolved to become the European Union (Evans 2012).
The various regions have been pursuing regionalism for different objectives such as trade liberalization by the Americans and encouragement of investment and competition, and reinforcement of multi-polarity in the international systems of the European Union, among other objectives. In some cases, there have been disputes that arise due to the inconsistency between the Regional Trade Agreement rules and those of the WTO.
Political Legal and Economic Arguments for Regionalism or Bilateral Trade Agreements
Countries seek to negotiate regional trade agreement for a wide range of...