International Trade Agreements
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Transcript International Trade Agreements
International Treaties &
Agreements
Means of Resolution
Article 38 of the Statute of the International Court of Justice (ICJ) (not to be confused with
the International Criminal Court (ICC) ) specifies the following sources of law to resolve
disputes between nations:
International treaties, conventions, protocols, covenants, or acts
Established rules recognized as formal agreements by the involved states
Eg. Treaty of Versailles, Geneva Convention, Kyoto Protocol, NAFTA, Law of Seas, APEC, etc.
Customary practices
A general practice maintained over such a long time and with such consistency that it has become
enforced as law
General Principles of Law
Principles recognized by civilized nations
Judicial Decisions and Teachings
Decisions made by the courts that were influential in shaping customs and practice
No binding force
International Treaties
Vienna Convention on the Law of Treaties: established the rules for creating treaties
Treaty: a written international agreement voluntarily entered into between two or
more sovereign states.
The formation involves the following steps:
1. Identification of a need for a treaty
2. Developing of a mutual interest, concern, and gaining public support
3. Negotiations leading to selection of specific international obligations
4. Bring the treaty into effect sign and ratify registered with the UN
Any concerns taken to the ICJ, decisions are not enforced
NAFTA
(North American Free Trade Agreement)
Members: Canada, U.S. and Mexico
Goals: reduce prices and costs through increased production , meet
challenges of global competition
Value: 444 Million consumers, Trade $946 Billion
Details: Makes up approx. 1/3 of all int. trade, Covers all goods & services &
investments(with provisions for intellectual property),
fair competition and dispute resolution,
Eliminates all duties, barriers and restrictions, Goods must have a certificate
of origin , in order to get this goods must be at least 50% produced at a
manufacturing plant in the region or be composed of components from
the region
FTAA
(Free Trade Area of the Americas)
34 countries, 845 million people and a combined gross domestic product of
more than $11 trillion.
It would be the largest free trade zone in the world
Still not passed
Strongly opposed by Unions and human rights organizations
EU – European Union
Population 503 million, GDP almost 13 Trillion Euros (16 Trillion USD)
Internally, the EU has abolished trade barriers, adopted a common
currency, and is striving toward convergence of living standards.
Internationally, the EU aims to bolster Europe's trade position and its political
and economic weight.
APEC
(Asia-Pacific Economic Cooperation)
Established in 1989, includes 21 “member economies” which allows the inclusion
of Hong Kong, Taiwan (both officially part of the Republic of China)
40% of world’s population, 54% of world’s GDP, 44% of world trade
No official treaties, decisions are reached by consensus and commitments met
on a voluntary basis
3 Pillars:
Trade & Investment Liberalization
Business Facilitation
Economic and Technical Cooperation
CETA
(Comprehensive Economic and Trade Agreement)
Signed on September 26, 2014 after ten years of discussions between
Canada and the European Union (EU)
Ratification to take up to two years as approval is needed from both
European parliament and all 28 EU member states
Will eliminate 98% of tariffs
More than doubles the imported cheese quotas from Europe
Removes a trade barrier and European wines and liquor
Beef and Pork export quotas to Europe increased to 50,000 and 80,000
tonnes/ year
Cheaper European vehicles (BMW now affordable!)