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!)