FREEDOM OF TRADE AND COMMERCE

Introduction

Trade is buying and selling of goods and services between two or more parties in consideration of cash and cash equivalents. While, commerce includes the exchange of goods and services along with activities viz. banking, insurance, advertising, transportation, warehousing, etc. to complement the exchange. So we can say trade is the subset of commerce. Commerce includes trade plus trade plus a few other activities. Trade is a connection between the buyer and seller. The commerce provides a connection between a producer and a final client who is not immediately connected. However, is in touch with the help of a few other helpers of distribution.

Every country needs the laws for trading and commerce to do the process of trading with the legal regulations. Had there been no law relating to trade and commerce there would be no applicability of rules.

Trade, Commerce, and Intercourse within the Territory of India

To regulate the procedures of trading, our Indian Constitution in part XIII under Articles 301-307 deals with the ‘Trade, Commerce and Intercourse within the Territory of India’. Intercourse is communication or dealings with individuals or groups. We will associate these three words under one heading, i.e., commercial transactions. According to the provisions:

1. The trade, commerce, and intercourse within the territory of India are free.
2. Parliament has the power to impose restrictions on trade, commerce, and intercourse on any State in the public’s interest.
3. The Parliament or the State Legislature will not favor any State over another State because of any entry relating to trade and commerce in any of the Lists in the Seventh Schedule.
4. The Parliament can make laws related to trade, commerce and intercourse according to the scarcity of goods in any part of the territory of India.
5. The State Legislature has the power to impose a tax on the goods imported from other States and Union Territories.
6. The State Legislature can impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State in the public’s interest.
7. Parliament can appoint necessary authority to carry out the rules related to trade, commerce and intercourse and empower him with such powers and duties as it may deem necessary.

Freedom of Trade and Commerce vis-à-vis Article 19

Article 19 of the Indian Constitution provides certain freedoms. Clause (d) of the same Article provides for freedom to move freely throughout the territory of India. In addition, Clause (g) of the same Article provides for freedom to practice any profession or to carry on any occupation, trade or business respectively. ‘Freely’ here denotes, with reasonable restrictions. For carrying out the process of trading mentioned under Article 301-307, the person has to have the freedom to practice any profession and also to move freely within the territory of India. Though there are differences both complement each other and not contradict. Some differences are:

1. Article 19(1) (d) and (g) look at the matter from the point of view of the right to freedom of movement of the citizen and Article 301 protects the general passage of persons and commodities from one State to another.
2. Article 19(1) (d) is applicable only to the citizens of India whereas Article 301 applies to any person.
3. Article 19 (1) (d) is a Fundamental Right. Therefore, the writ petition under Article 32 can be filed. However, under Article 301 writ petition can’t be filled.

To regulate the Trade-related activities between the countries, International Trade Law has been enacted. The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade. The WTO officially commenced on 1 January 1995, signed by 123 nations on 15 April 1994. It replaced the General Agreement on Tariffs and Trade (GATT), which commenced in the year 1948.

Conclusion

Free movement of goods throughout the territory of the country is essential for the economic utility of the country. Therefore, the nation needs to maintain a cycle of demand and supply to keep working on its growth. This has become more important after the globalization of the economy.  Therefore, an attempt is made through constitutional provisions to create and preserve economic development. Moreover, proper regulations of the trade promote equality and unity among the religions.