ITL is a branch of law involving the law of trade between nations. It controls the movement of goods, services, and intellectual property across national boundaries and is intended to make sure that international trade is fair, predictable, and transparent. The international trade law is very significant in a world that is becoming more globalized since it promotes economic cooperation and minimization of trade barriers and also in solving disputes between countries. International trade law is significant in the sense that it embodies the interplay of the law and economics, politics and international relations. It also assists in knowing how the national laws are affected by the international commitments and agreements.
INTERNATIONAL TRADE LAW: MEANING AND SCOPE.
- The international trade law is a set of regulations and principles, which regulate trade involving transactions between sovereign states and other participants in international trade. It comprises treaties, conventions, customs and the dispute settlement mechanisms through which the trade practices are regulated.
- The international trade law is inclusive and includes:
- Trade in goods
- Trade in services
- Trade Intellectual property rights.
- Anti-dumping and subsidies Trade remedies.
- Mechanisms in dispute resolution.
- The rules are majorly structured to avoid protectionism and to encourage free and fair trade among countries.
INTERNATIONAL TRADE LAW EVOLUTION.
The contemporary system of the international trade law was formed after the Second World War. A collective of nations came up with General Agreement on Tariffs and Trade (GATT) in 1947 with the aim of eliminating tariffs and other trade obstacles. GATT was a preliminary agreement though it provided the basis to the modern system of worldwide trade.
The negotiations that took place in Uruguay Round had led to the creation of the World Trade Organization (WTO) in the year 1995. The WTO came to substitute GATT and opened the trade regulation to services and intellectual property. The advent of the WTO signaled a new change of a more systematic and legally enforceable system of international trade law.
SIGNIFICANCE AND AREA OF INTERNATIONAL TRADE LAW.
- International trade law is the regulation of trade between states and non-governmental organizations having to do with trade across borders. It consists of treaties, conventions, customs and dispute settlement systems which govern trade practices.
- The international trade law is very wide with the coverage including:
- Trade in goods
- Trade in services
- Trade-related intellectual property rights.
- Such trade remedies include anti-dumping and subsidies.
- Out-of-court settlement procedures.
- These policies are mainly structured in such a way that they will deter protectionism and also facilitate free and fair trade amongst countries.
INTERNATIONAL TRADE LAW EVOLUTION.
After the Second World War, the contemporary international trade law emerged. The General Agreement on Tariffs and Trade (GATT) was formed in the year 1947 with the aim of eliminating tariffs and other trade restrictions. Despite the fact that GATT was a transitory agreement at the beginning, it formed the backbone of the modern international trading system.
The World Trade Organization (WTO) was formed in 1995 after the Uruguay Round of talks. GATT was replaced by the WTO and the area of trade regulation extended to services and intellectual property. The formation of the WTO was a major transition of an easier and more organized international law of trade.
MAJOR WTO AGREEMENTS
The WTO framework of international trade law is subjected to a number of important agreements:
The Agreement on Trade in Goods (GATT 1994)
GATT is an international trade that controls the trading of goods by lowering the tariffs and doing away with discriminatory trade. It also permits some exceptions of which the actions that are taken to safeguard human health, environment, or national security.
General Agreement on Trade in Services (GATS)
GATS regulates services that include banking, telecommunication, education, tourism and so on. It facilitates the liberalization of the services yet gives the countries the ability to control services depending on their domestic demands.
Agreement on Trade-Related Aspect of Intellectual Property Rights (TRIPS)
TRIPS entails minimum standards on intellectual property protection and enforcement of patents, trademarks as well as copyrights. It strives to create a balance between the interests of innovators and the interests of the general public especially in third world countries.
DISPUTE SETTLEMENT MECHANISM
The most important thing about the WTO is its Dispute Settlement Mechanism (DSM). It offers an organized approach to effectively solving trade disputes amongst the member states in a court of law. The process makes sure that contentions are resolved on the basis of regulations other than political or economic influence.
Consultations, panel proceedings and appellate review are involved in the dispute settlement process. The decisions become binding upon the parties and this increases the effectiveness and credibility of the international trade law.
INTERNATIONAL TRADE LAW AND DEVELOPING COUNTRIES.
The international trade law takes into consideration the special needs of the developing and least-developed countries. The agreements of WTO include special and differential treatment, whereby these countries have more time in which to enforce the obligations and have increased flexibility in the trade policies adopted.
In a nation such as India, the international trade law is very important in the integration of the domestic economy into the global markets without jeopardizing the national interests like agriculture, health of the public, and small industries.
INTERNATIONAL TRADE LAW PROBLEMS.
Irrespective of its significance, the international trade law has a number of challenges. These are, trade protectionism, inequality among the developed and the developing nations, and the dynamic nature of digital trade and e-commerce. Also, multilateral trading system has been instilled with political tensions and unilateral trade practices which tend to cripple the system.
The effects of international trade on the environment, labour rights, and the common health are also becoming a matter of concern and there are talks on how to revamp the trade laws making them more inclusive and sustainable.
CONCLUSION
The international trade law is the keystone of the international trading system because it offers rules and mechanisms that advance free, fair as well as predictable trade relations. International trade law using such institutions like the WTO and agreements such as GATT, GATS and TRIPS aims at balancing national sovereignty and public interest with economic growth.
As a final-year law student, international trade law can be of great help in understanding the global governance and regulation of the economy. Due to the current development and the continuity of the international trade, this branch of law will still be necessary in international problem-solving and promoting global cooperation.
contributed by: Akash Singh