INTERNATIONLA TRADE LAW
UNIT I NOTES
INTRODUCTION OF INTERNATIONAL TRADE LAW:
Generally, international trade law includes the rules and customs governing trade between
countries. International trade lawyers may focus on applying domestic laws to international
trade, and applying treaty-based international law governing trade.
History:
Before the emergence of modern state system in 17th century, trade was free and merchants
moved all over the world to the extent they could buying and selling goods and incidentally
spreading knowledge and culture. In this way, they were the harbingers of modern
civilization. But once the organized state system came into existence, the governments started
interfering into these commercial transactions.
To start with, they began to levy tariffs on incoming goods mainly with a view to bolstering
their revenues. With the ushering in of Industrial revolution, manufacturing became an
important component of national economy. At that stage, states started using tariffs and other
devices to protect national economy from foreign competitors. From that time onwards, free
trade and protectionism moved side by side: one following the other like a shadow.
Concept:
International Trade Law (ITL) is the law regulating international commerce. It has two
aspects: public and private. The public aspect of ITL seeks to coordinate commercial policies
of states; and it is a part of Public International Law. The private aspect of ITL governs
international commercial transactions between the people belonging to different states. This
is substantially covered under Private International Law. In addition, the bodies like the
United Nations Commission on International Trade Law have been trying to develop standard
laws on various aspects of transnational transactions and states are expected to incorporate
them in their respective legal system. This process is known as unification of laws.
Two main areas of international trade on the domestic side include trade remedy work and
export controls/sanctions. Trade remedies are tools used by the government to take corrective
action against imports that are causing material injury to a domestic industry because of
unfair foreign pricing and/or foreign government subsidies.
An example of a trade remedy includes antidumping duties set forth by the International
Trade Commission (“ITC”) in response to dumping; this occurs when a foreign company
sells a product that is below the price it sells for in its ‘home market’ and thus causes harm to
the home country’s industry.