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Hello! I'm Miss Fauziah. Feel free to contact me at 0125999755 or fauziah@kuips.edu.my

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Teaching Plan BLM 4993 INTERNATIONAL TRADE LAW

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CHAPTER 1: INTRODUCTION TO INTERNATIONAL TRADE LAW

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CHAPTER 1: INTRODUCTION TO INTERNATIONAL TRADE LAW

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CHAPTER 1 INTRODUCTION TO INTERNATIONAL TRADE LAW (5)

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Please create a very nice and creative MIND MAP using any tools in ONE PAGE about THE RESPONSIBILITIES OF THE SELLER AND BUYER UNDER CIF CONTRACT.

Convert it to PDF form and upload it using PADLET under this section. Thank you

Due date: XXXX

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Please create a very nice and creative MIND MAP using any tools about the following cases

FOB Cases
1.George Wills & Sons Ltd v Thomas Brown & Sons
2. Wimble Sons & Co. v Rosenberg

CIF Cases
1. Biddel Brothers v E Clement Horst Company
2. Arcos Ltd v EA Ronaasen & Son

Convert it to PDF form and upload it using PADLET under this section. Thank you

Due date: 12 October 2021

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CHAPTER 6 WORLD TRADE ORGANIZATION (WTO)(PART1)

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CHAPTER 6 WORLD TRADE ORGANIZATION (WTO)(PART2)

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PLEASE REFER TO THIS LINK FOR WTO DISPUTE SETTLEMENT https://www.wto.org/english/tratop_e/dispu_e/dispu_e.htm

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Dispute settlement

Resolving trade disputes is one of the core activities of the WTO. A dispute arises when a member government believes another member government is violating an agreement or a commitment that it has made in the WTO. The WTO has one of the most active international dispute settlement mechanisms in the world. Since 1995, disputes have been brought to the WTO and over 350 rulings have been issued.

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News

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Introduction to dispute settlement in the WTO

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Dispute settlement process

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Dispute Settlement Body

The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between WTO members.

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The Appellate Body

Appeals are handled by the permanent seven-member Appellate Body which is set up by the Dispute Settlement Body and broadly represents the range of WTO membership.

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Dispute settlement activity - some figures

As of end-2022, WTO members had submitted 615 requests for consultations, the first stage in the dispute settlement process.

Requests for consultations (1995 -2022)

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Documents

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Interpretation of WTO agreements

The WTO Analytical Index is a comprehensive guide to the interpretation and application of the WTO agreements by the Appellate Body, dispute settlement panels and other WTO bodies. It contains extracts of key pronouncements and findings from tens of thousands of pages of WTO jurisprudence, including panel reports, Appellate Body reports, arbitral decisions and awards, and decisions of WTO committees, councils and other WTO bodies.

The WTO Appellate Body Repertory of Reports and Awards covers the Appellate Body's rulings in WTO disputes since its establishment in 1995.

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Negotiations to improve dispute settlement procedures

At the Doha Ministerial Conference, in 2001, WTO members agreed to negotiate to improve and clarify the DSU - the rules and procedures governing the settlement of WTO disputes.

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Secretariat's informal consultations concerning the panel process

At the request of the Director-General, the Secretariat initiated in 2010 a process of informal consultations with a view to exploring whether it is possible to find efficiency gains in the panel process.

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INTRODUCTION TO WTO
https://www.wto.org/english/thewto_e/thewto_e.htm

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What is the WTO?

Who we are
The WTO has many roles: it operates a global system of trade rules, it acts as a forum for negotiating trade agreements, it settles trade disputes between its members and it supports the needs of developing countries.

What we do
All major decisions are made by the WTO's member governments: either by ministers (who usually meet at least every two years) or by their ambassadors or delegates (who meet regularly in Geneva).

What we stand for
A number of simple, fundamental principles form the foundation of the multilateral trading system.

Overview
The primary purpose of the WTO is to open trade for the benefit of all.

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Decision-making

Organization chart
The WTO's top decision-making body is the Ministerial Conference. Below this is the General Council and various other councils and committees.
Current WTO chairpersons

Ministerial conferences
Ministerial conferences usually take place every two years.

General Council
The General Council is the top day-to-day decision-making body. It meets a number of times a year in Geneva.

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Membership

Members and observers
The WTO has over 160 members representing 98 per cent of world trade. Over 20 countries are seeking to join the WTO.

Accessions
To join the WTO, a government has to bring its economic and trade policies in line with WTO rules and negotiate its terms of entry with the WTO membership.

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WTO Secretariat

The WTO has approximately 650 staff on its regular budget.

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Budget

The WTO derives most of the income for its annual budget from contributions by its members. These contributions are based on a formula that takes into account each member's share of international trade.

Find out more

Director-General

Ngozi Okonjo-Iweala is the seventh Director-General of the WTO. She took office on 1 March 2021, becoming the first woman and the first African to serve as Director-General. Her term of office will expire on 31 August 2025.

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The WTO building

The WTO is housed in the historic Centre William Rappard building. A new building was added in 2013.

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Procurement at the WTO

The WTO Procurement Section is responsible for obtaining, in a timely and cost-effective manner, goods and services which meet the needs of the organization.

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The WTO and other organizations

Cooperation between multilateral institutions on global economic policy-making.

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Annual report

The WTO Annual Report provides a comprehensive overview of WTO activities over the past year and includes information on the WTO's budget and staffing.

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Jobs in the WTO

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General enquiries, publications, the website. Also copyright and trademark statements.

Find out more

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The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the worlds trading nations and ratified in their parliaments. The goal is to ensure that trade flows as smoothly, predictably and freely as possible.

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WHAT IS INTERNATIONAL TRADE LAW? PART 1
https://en.wikipedia.org/wiki/International_trade_law

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WHAT IS INTERNATIONAL TRADE LAW? PART 2
https://www.justia.com/international-law/international-trade-law/

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International treaties and acts of intergovernmental organizations govern the global economy, while the World Trade Organization facilitates free trade.

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A GLOSSARY FOR INTERNATIONAL SHIPPING TERMS
https://www.shippingsolutions.com/blog/a-glossary-of-international-shipping-terms

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ANTI DUMPING (MALAYSIA)
https://www.miti.gov.my/index.php/pages/view/2033

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ANTI DUMPING

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WTO: ANTI DUMPING

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https://carrerstudies.blogspot.com/2020/10/how-does-anti-dumping-work.html

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TO REVIEW

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https://www.shippingsolutions.com/blog/beginners-introduction-to-incoterms

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https://www.youtube.com/watch?v=reAjDV9j09g

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Bill of Lading : Types of Bill of Lading & Bill of Lading Samples

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https://www.youtube.com/watch?v=Yk3340IQMtg

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Incoterms FOB (Free On Board) Explained In Detail For Beginners

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https://www.youtube.com/watch?v=5ScyvHcXPPI

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cost insurance and freight !! CIF !! incoterms !! international shipping terms !! i tutorial!!

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https://www.wallstreetmojo.com/bill-of-lading/

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Instructions:
1. Select any 10 SHIPPING TERMINOLOGIES
2. Create a MINDMAP using the info that you choose.
3. Upload your task in the PADLET under Chapter 1.
4. Due date: 26 Feb 2022, 5.30 pm

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Abdur Razzak
5202123005

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Muhamad Nurul Ieman B. Mohd Tajudin
0202123007

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MUHAMMAD OSMAN BIN HASYIMI
(0211123004)

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HEBAHAN [SENAT KE33] 2021.2022 TAKWIM AKADEMIK_ACADEMIC CALENDAR

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Abdur Razzak
5202123005

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Muhamad Nurul Ieman B. Mohd Tajudin
0202123007

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Muhammad aiman bin ahmad 0211123025

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MUHAMMAD WAJDI BIN FAUZI [0211123042] BLSCM

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My name is muhammad wajdi bin fauzi. Im from langkawi kedah. Im 21 years old. My secondary school is SMK Kedawang course science streams. Im STPM student at SMK Tunku Putra langkawi and now im logistic student at KUIPS. What i expect from this course is hardly to score but i hope this madam fauziah can guide to get A in my final exam. I hope i can get more knowledge abou trading.

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Muhammad Wajdi Bin Fauzi
0211123042

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The responsibilities of the seller and buyer under the CIF contract

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Abdur Razzak
5202123005

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International Trade Law Task 1 Chapter 2

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DUE DATE: WEEK 13

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Abdur Razzak
5202123005

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TASK: 25 MAC 2022

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Abdur Razzak
5202123005

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Hansson v Hamel and Horley Ltd (ITL TASK 1)

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Muhamad Nurul Ieman B. Mohd Tajudin (0202123007)

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Muhamad Nurul Ieman B. Mohd Tajudin

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Muhamad Nurul Ieman B. Mohd Tajudin (0202123007)

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MAHAMMAD AIMAN BIN AHMAD

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MUHAMMAD OSMAN B HASYIMI (0211123004)

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MUHAMMAD OSMAN B HASYIMI
0211123004

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https://www.wto.org/english/tratop_e/dispu_e/disp_settlement_cbt_e/c6s1p1_e.htm#:~:text=There%20are%20three%20main%20stages,by%20the%20losing%20party%20to

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DISPUTE SETTLEMENT SYSTEM TRAINING MODULE: CHAPTER 6

This chapter explains all the various stages through which a dispute can pass in the (WTO) dispute settlement system. There are two main ways to settle a dispute once a complaint has been filed in the WTO: (i) the parties find a mutually agreed solution, particularly during the phase of bilateral consultations; and (ii) through adjudication, including the subsequent implementation of the panel and Appellate Body reports, which are binding upon the parties once adopted by the DSB. There are three main stages to the WTO dispute settlement process: (i) consultations between the parties; (ii) adjudication by panels and, if applicable, by the Appellate Body; and (iii) the implementation of the ruling, which includes the possibility of countermeasures in the event of failure by the losing party to implement the ruling.

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6.1 Flow chart of the Dispute Settlement Process

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The process Stages in a typical WTO dispute settlement case

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This TRADE TOPICS page will take you to information available on the WTO website, on issues handled by the WTO's councils and committees, and its trade agreements

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https://www.wto.org/english/tratop_e/dispu_e/disp_settlement_cbt_e/c1s1p1_e.htm

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DISPUTE SETTLEMENT SYSTEM TRAINING MODULE: CHAPTER 1

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1.1 Importance of the WTO dispute settlement system

The best international agreement is not worth very much if its obligations cannot be enforced when one of the signatories fails to comply with such obligations. An effective mechanism to settle disputes thus increases the practical value of the commitments the signatories undertake in an international agreement. The fact that the Members of the (WTO) established the current dispute settlement system during the Uruguay Round of Multilateral Trade Negotiations underscores the high importance they attach to compliance by all Members with their obligations under the WTO Agreement.

Settling disputes in a timely and structured manner is important. It helps to prevent the detrimental effects of unresolved international trade conflicts and to mitigate the imbalances between stronger and weaker players by having their disputes settled on the basis of rules rather than having power determine the outcome. Most people consider the WTO dispute settlement system to be one of the major results of the Uruguay Round. After the entry into force of the WTO Agreement in 1995, the dispute settlement system soon gained practical importance as Members frequently resorted to using this system.

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Introduction to the WTO dispute settlement system

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This TRADE TOPICS page will take you to information available on the WTO website, on issues handled by the WTO's councils and committees, and its trade agreements

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https://www.wto.org/english/tratop_e/dispu_e/disp_settlement_cbt_e/c1s3p1_e.htm

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DISPUTE SETTLEMENT SYSTEM TRAINING MODULE: CHAPTER 1

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1.3 Functions, objectives and key features of the dispute settlement system

Providing security and predictability to the multilateral trading system

A central objective of the (WTO) dispute settlement system is to provide security and predictability to the multilateral trading system ( Article 3.2 of the DSU). Although international trade is understood in the WTO as the flow of goods and services between Members, such trade is typically not conducted by States, but rather by private economic operators. These market participants need stability and predictability in the government laws, rules and regulations applying to their commercial activity, especially when they conduct trade on the basis of long-term transactions. In light of this, the DSU aims to provide a fast, efficient, dependable and rule-oriented system to resolve disputes about the application of the provisions of the WTO Agreement. By reinforcing the rule of law, the dispute settlement system makes the trading system more secure and predictable. Where non-compliance with the WTO Agreement has been alleged by a WTO Member, the dispute settlement system provides for a relatively rapid resolution of the matter through an independent ruling that must be implemented promptly, or the non-implementing Member will face possible trade sanctions.

Preserving the rights and obligations of WTO Members back to top

Typically, a dispute arises when one WTO Member adopts a trade policy measure that one or more other Members consider to be inconsistent with the obligations set out in the WTO Agreement. In such a case, any Member that feels aggrieved is entitled to invoke the procedures and provisions of the dispute settlement system in order to challenge that measure.

If the parties to the dispute do not manage to reach a mutually agreed solution, the complainant is guaranteed a rules-based procedure in which the merits of its claims will be examined by an independent body (panels and the Appellate Body). If the complainant prevails, the desired outcome is to secure the withdrawal of the measure found to be inconsistent with the WTO Agreement. Compensation and countermeasures (the suspension of obligations) are available only as secondary and temporary responses to a contravention of the WTO Agreement ( Article 3.7 of the DSU).

Thus, the dispute settlement system provides a mechanism through which WTO Members can ensure that their rights under the WTO Agreement can be enforced. This system is equally important from the perspective of the respondent whose measure is under challenge, since it provides a forum for the respondent to defend itself if it disagrees with the claims raised by the complainant. In this way, the dispute settlement system serves to preserve the Members' rights and obligations under the WTO Agreement ( Article 3.2 of the DSU). The rulings of the bodies involved (the DSB the Appellate Body, panels and arbitrations) are intended to reflect and correctly apply the rights and obligations as they are set out in the WTO Agreement. They must not change the WTO law that is applicable between the parties or, in the words of the DSU, add to or diminish the rights and obligations provided in the WTO Agreements ( Articles 3.2 and 19.2 of the DSU).

Notes:

1. The composition and tasks of these bodies will be explained in the sections on 3.1 The Dispute Settlement Body (DSB), Panels and the Appellate Body. back to text

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Introduction to the WTO dispute settlement system

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This TRADE TOPICS page will take you to information available on the WTO website, on issues handled by the WTO's councils and committees, and its trade agreements

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https://www.wto.org/english/thewto_e/whatis_e/tif_e/disp1_e.htm

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UNDERSTANDING THE WTO: SETTLING DISPUTES

Dispute settlement is the central pillar of the multilateral trading system, and the WTO's unique contribution to the stability of the global economy. Without a means of settling disputes, the rules-based system would be less effective because the rules could not be enforced. The WTO's procedure underscores the rule of law, and it makes the trading system more secure and predictable. The system is based on clearly-defined rules, with timetables for completing a case. First rulings are made by a panel and endorsed (or rejected) by the WTO's full membership. Appeals based on points of law are possible.

However, the point is not to pass judgement. The priority is to settle disputes, through consultations if possible. By January 2008, only about 136 of the nearly 369 cases had reached the full panel process. Most of the rest have either been notified as settled "out of court" or remain in a prolonged consultation phase - some since 1995.

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More introductory information
> The WTO in Brief

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Principles: equitable, fast, effective, mutually acceptable

Disputes in the WTO are essentially about broken promises. WTO members have agreed that if they believe fellow-members are violating trade rules, they will use the multilateral system of settling disputes instead of taking action unilaterally. That means abiding by the agreed procedures, and respecting judgements.

A dispute arises when one country adopts a trade policy measure or takes some action that one or more fellow-WTO members considers to be breaking the WTO agreements, or to be a failure to live up to obligations. A third group of countries can declare that they have an interest in the case and enjoy some rights.

A procedure for settling disputes existed under the old GATT, but it had no fixed timetables, rulings were easier to block, and many cases dragged on for a long time inconclusively. The Uruguay Round agreement introduced a more structured process with more clearly defined stages in the procedure. It introduced greater discipline for the length of time a case should take to be settled, with flexible deadlines set in various stages of the procedure. The agreement emphasizes that prompt settlement is essential if the WTO is to function effectively. It sets out in considerable detail the procedures and the timetable to be followed in resolving disputes. If a case runs its full course to a first ruling, it should not normally take more than about one year - 15 months if the case is appealed. The agreed time limits are flexible, and if the case is considered urgent (e.g. if perishable goods are involved), it is accelerated as much as possible.

The Uruguay Round agreement also made it impossible for the country losing a case to block the adoption of the ruling. Under the previous GATT procedure, rulings could only be adopted by consensus, meaning that a single objection could block the ruling. Now, rulings are automatically adopted unless there is a consensus to reject a ruling - any country wanting to block a ruling has to persuade all other WTO members (including its adversary in the case) to share its view.

Although much of the procedure does resemble a court or tribunal, the preferred solution is for the countries concerned to discuss their problems and settle the dispute by themselves. The first stage is therefore consultations between the governments concerned, and even when the case has progressed to other stages, consultation and mediation are still always possible.

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What is this agreement called?
Understanding on Rules and Procedures Governing the Settlement of Disputes

More cases can be good news

If the courts find themselves handling an increasing number of criminal cases, does that mean law and order is breaking down? Not necessarily. Sometimes it means that people have more faith in the courts and the rule of law. They are turning to the courts instead of taking the law into their own hands.

For the most part, that is what is happening in the WTO. No one likes to see countries quarrel. But if there are going to be trade disputes anyway, it is healthier that the cases are handled according to internationally agreed rules. There are strong grounds for arguing that the increasing number of disputes is simply the result of expanding world trade and the stricter rules negotiated in the Uruguay Round; and that the fact that more are coming to the WTO reflects a growing faith in the system.

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How are disputes settled?

Settling disputes is the responsibility of the Dispute Settlement Body (the General Council in another guise), which consists of all WTO members. The Dispute Settlement Body has the sole authority to establish "panels" of experts to consider the case, and to accept or reject the panels' findings or the results of an appeal. It monitors the implementation of the rulings and recommendations, and has the power to authorize retaliation when a country does not comply with a ruling.

First stage: consultation (up to 60 days). Before taking any other actions the countries in dispute have to talk to each other to see if they can settle their differences by themselves. If that fails, they can also ask the WTO director-general to mediate or try to help in any other way.

Second stage: the panel (up to 45 days for a panel to be appointed, plus 6 months for the panel to conclude). If consultations fail, the complaining country can ask for a panel to be appointed. The country "in the dock" can block the creation of a panel once, but when the Dispute Settlement Body meets for a second time, the appointment can no longer be blocked (unless there is a consensus against appointing the panel).

Officially, the panel is helping the Dispute Settlement Body make rulings or recommendations. But because the panel's report can only be rejected by consensus in the Dispute Settlement Body, its conclusions are difficult to overturn. The panel's findings have to be based on the agreements cited.

The panel's final report should normally be given to the parties to the dispute within six months. In cases of urgency, including those concerning perishable goods, the deadline is shortened to three months.

The agreement describes in some detail how the panels are to work. The main stages are:

Before the first hearing: each side in the dispute presents its case in writing to the panel.

First hearing: the case for the complaining country and defence: the complaining country (or countries), the responding country, and those that have announced they have an interest in the dispute, make their case at the panel's first hearing.

Rebuttals: the countries involved submit written rebuttals and present oral arguments at the panel's second meeting.

Experts: if one side raises scientific or other technical matters, the panel may consult experts or appoint an expert review group to prepare an advisory report.

First draft: the panel submits the descriptive (factual and argument) sections of its report to the two sides, giving them two weeks to comment. This report does not include findings and conclusions.

Interim report: The panel then submits an interim report, including its findings and conclusions, to the two sides, giving them one week to ask for a review.

Review: The period of review must not exceed two weeks. During that time, the panel may hold additional meetings with the two sides.

Final report: A final report is submitted to the two sides and three weeks later, it is circulated to all WTO members. If the panel decides that the disputed trade measure does break a WTO agreement or an obligation, it recommends that the measure be made to conform with WTO rules. The panel may suggest how this could be done.

The report becomes a ruling: The report becomes the Dispute Settlement Body's ruling or recommendation within 60 days unless a consensus rejects it. Both sides can appeal the report (and in some cases both sides do).

Panels are like tribunals. But unlike in a normal tribunal, the panellists are usually chosen in consultation with the countries in dispute. Only if the two sides cannot agree does the WTO director-general appoint them.

Panels consist of three (possibly five) experts from different countries who examine the evidence and decide who is right and who is wrong. The panel's report is passed to the Dispute Settlement Body, which can only reject the report by consensus.

Panelists for each case may be chosen from an indicative list of well-qualified candidates nominated by WTO Members, although others may be considered as well, including those who have formerly served as panelist. Panelists serve in their individual capacities. They cannot receive instructions from any government. The indicative list is maintained by the Secretariat and periodically revised according to any modifications or additions submitted by Members.

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Appeals

Either side can appeal a panel's ruling. Sometimes both sides do so. Appeals have to be based on points of law such as legal interpretation - they cannot reexamine existing evidence or examine new issues.

Each appeal is heard by three members of a permanent seven-member Appellate Body set up by the Dispute Settlement Body and broadly representing the range of WTO membership. Members of the Appellate Body have four-year terms. They have to be individuals with recognized standing in the field of law and international trade, not affiliated with any government.

The appeal can uphold, modify or reverse the panel's legal findings and conclusions. Normally appeals should not last more than 60 days, with an absolute maximum of 90 days.

The Dispute Settlement Body has to accept or reject the appeals report within 30 days - and rejection is only possible by consensus.

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The case has been decided: what next?

Go directly to jail. Do not pass Go, do not collect ... . Well, not exactly. But the sentiments apply. If a country has done something wrong, it should swiftly correct its fault. And if it continues to break an agreement, it should offer compensation or face a suitable response that has some bite - although this is not actually a punishment: it's a "remedy", the ultimate goal being for the country to comply with the ruling.

The priority is for the losing "defendant" to bring its policy into line with the ruling or recommendations, and it is given time to do this. The dispute settlement agreement stresses that "prompt compliance with recommendations or rulings of the DSB [Dispute Settlement Body] is essential in order to ensure effective resolution of disputes to the benefit of all Members".

If the country that is the target of the complaint loses, it must follow the recommendations of the panel report or the appeals report. It must state its intention to do so at a Dispute Settlement Body meeting held within 30 days of the report's adoption. If complying with the recommendation immediately proves impractical, the member will be given a "reasonable period of time" to do so. If it fails to act within this period, it has to enter into negotiations with the complaining country (or countries) in order to determine mutually-acceptable compensation - for instance, tariff reductions in areas of particular interest to the complaining side.

If after 20 days, no satisfactory compensation is agreed, the complaining side may ask the Dispute Settlement Body for permission to retaliate (to "suspend concessions or other obligations"). This is intended to be temporary, to encourage the other country to comply. It could for example take the form of blocking imports by raising import duties on products from the other country above agreed limits to levels so high that the imports are too expensive to sell - within certain limits. The Dispute Settlement Body must authorize this within 30 days after the "reasonable period of time" expires unless there is a consensus against the request.

In principle, the retaliation should be in the same sector as the dispute. If this is not practical or if it would not be effective, it can be in a different sector of the same agreement. In turn, if this is not effective or practicable and if the circumstances are serious enough, the action can be taken under another agreement. The objective is to minimize the chances of actions spilling over into unrelated sectors while at the same time allowing the actions to be effective.

In any case, the Dispute Settlement Body monitors how adopted rulings are implemented. Any outstanding case remains on its agenda until the issue is resolved.

> See also Doha Agenda negotiations

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WTO | Understanding the WTO - A unique contribution

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Dispute settlement is the central pillar of the multilateral trading system, and the WTOs unique contribution to the stability of the global economy. Without a means of settling disputes, the rules-based system would be less effective because the rules could not be enforced.

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Origin of the Most-Favored-Nation (MFN) Principle 

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Origin of the Most-Favored-Nation (MFN) Principle 

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National treatment: Treating foreigners and locals equally 

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National treatment: Treating foreigners and locals equally 

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https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm

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Trade without discrimination

1. Most-favoured-nation (MFN): treating other people equally Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.

This principle is known as most-favoured-nation (MFN) treatment (). It is so important that it is the first article of the General Agreement on Tariffs and Trade (GATT), which governs trade in goods. MFN is also a priority in the General Agreement on Trade in Services (GATS) (Article 2) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (Article 4), although in each agreement the principle is handled slightly differently. Together, those three agreements cover all three main areas of trade handled by the WTO.

Some exceptions are allowed. For example, countries can set up a free trade agreement that applies only to goods traded within the group discriminating against goods from outside. Or they can give developing countries special access to their markets. Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. And in services, countries are allowed, in limited circumstances, to discriminate. But the agreements only permit these exceptions under strict conditions. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners whether rich or poor, weak or strong.

2. National treatment: Treating foreigners and locals equally Imported and locally-produced goods should be treated equally at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents. This principle of national treatment (giving others the same treatment as ones own nationals) is also found in all the three main WTO agreements (Article 3 of GATT, Article 17 of GATS and Article 3 of TRIPS), although once again the principle is handled slightly differently in each of these.

National treatment only applies once a product, service or item of intellectual property has entered the market. Therefore, charging customs duty on an import is not a violation of national treatment even if locally-produced products are not charged an equivalent tax.

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Freer trade: gradually, through negotiation

Lowering trade barriers is one of the most obvious means of encouraging trade. The barriers concerned include customs duties (or tariffs) and measures such as import bans or quotas that restrict quantities selectively. From time to time other issues such as red tape and exchange rate policies have also been discussed.

Since GATTs creation in 1947-48 there have been eight rounds of trade negotiations. A ninth round, under the Doha Development Agenda, is now underway. At first these focused on lowering tariffs (customs duties) on imported goods. As a result of the negotiations, by the mid-1990s industrial countries tariff rates on industrial goods had fallen steadily to less than 4%.

But by the 1980s, the negotiations had expanded to cover non-tariff barriers on goods, and to the new areas such as services and intellectual property.

Opening markets can be beneficial, but it also requires adjustment. The WTO agreements allow countries to introduce changes gradually, through progressive liberalization. Developing countries are usually given longer to fulfil their obligations.

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Predictability: through binding and transparency

Sometimes, promising not to raise a trade barrier can be as important as lowering one, because the promise gives businesses a clearer view of their future opportunities. With stability and predictability, investment is encouraged, jobs are created and consumers can fully enjoy the benefits of competition choice and lower prices. The multilateral trading system is an attempt by governments to make the business environment stable and predictable.

The Uruguay Round increased bindings

Percentages of tariffs bound before and after the 1986-94 talks

(These are tariff lines, so percentages are not weighted according to trade volume or value)

In the WTO, when countries agree to open their markets for goods or services, they bind their commitments. For goods, these bindings amount to ceilings on customs tariff rates. Sometimes countries tax imports at rates that are lower than the bound rates. Frequently this is the case in developing countries. In developed countries the rates actually charged and the bound rates tend to be the same.

A country can change its bindings, but only after negotiating with its trading partners, which could mean compensating them for loss of trade. One of the achievements of the Uruguay Round of multilateral trade talks was to increase the amount of trade under binding commitments (see table). In agriculture, 100% of products now have bound tariffs. The result of all this: a substantially higher degree of market security for traders and investors.

The system tries to improve predictability and stability in other ways as well. One way is to discourage the use of quotas and other measures used to set limits on quantities of imports administering quotas can lead to more red-tape and accusations of unfair play. Another is to make countries trade rules as clear and public (transparent) as possible. Many WTO agreements require governments to disclose their policies and practices publicly within the country or by notifying the WTO. The regular surveillance of national trade policies through the Trade Policy Review Mechanism provides a further means of encouraging transparency both domestically and at the multilateral level.

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Promoting fair competition

The WTO is sometimes described as a free trade institution, but that is not entirely accurate. The system does allow tariffs and, in limited circumstances, other forms of protection. More accurately, it is a system of rules dedicated to open, fair and undistorted competition.

The rules on non-discrimination MFN and national treatment are designed to secure fair conditions of trade. So too are those on dumping (exporting at below cost to gain market share) and subsidies. The issues are complex, and the rules try to establish what is fair or unfair, and how governments can respond, in particular by charging additional import duties calculated to compensate for damage caused by unfair trade.

Many of the other WTO agreements aim to support fair competition: in agriculture, intellectual property, services, for example. The agreement on government procurement (a plurilateral agreement because it is signed by only a few WTO members) extends competition rules to purchases by thousands of government entities in many countries. And so on.

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Encouraging development and economic reform

The WTO system contributes to development. On the other hand, developing countries need flexibility in the time they take to implement the systems agreements. And the agreements themselves inherit the earlier provisions of GATT that allow for special assistance and trade concessions for developing countries.

Over three quarters of WTO members are developing countries and countries in transition to market economies. During the seven and a half years of the Uruguay Round, over 60 of these countries implemented trade liberalization programmes autonomously. At the same time, developing countries and transition economies were much more active and influential in the Uruguay Round negotiations than in any previous round, and they are even more so in the current Doha Development Agenda.

At the end of the Uruguay Round, developing countries were prepared to take on most of the obligations that are required of developed countries. But the agreements did give them transition periods to adjust to the more unfamiliar and, perhaps, difficult WTO provisions particularly so for the poorest, least-developed countries. A ministerial decision adopted at the end of the round says better-off countries should accelerate implementing market access commitments on goods exported by the least-developed countries, and it seeks increased technical assistance for them. More recently, developed countries have started to allow duty-free and quota-free imports for almost all products from least-developed countries. On all of this, the WTO and its members are still going through a learning process. The current Doha Development Agenda includes developing countries concerns about the difficulties they face in implementing the Uruguay Round agreements.

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WTO | Understanding the WTO - principles of the trading system

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The WTO agreements are lengthy and complex because they are legal texts covering a wide range of activities. They deal with: agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards and product safety, food sanitation regulations, intellectual property, and much more. But a number of simple, fundamental principles run throughout all of these documents.

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The National Treatment Principle inInternational Trade Law

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The National Treatment Principle inInternational Trade Law

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International Trade, National Treatment, and Domestic Regulation

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International Trade, National Treatment, and Domestic Regulation

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The Role of Letters of Credit in Payment Transactions

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The Role of Letters of Credit in Payment Transactions

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Documentary Letters of Credit, Legal Nature and Sources of Law

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Documentary Letters of Credit, Legal Nature and Sources of Law

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LETTERS OF CREDIT, THE UCP600 AND DOCUMENTARY REQUIREMENTS

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LETTERS OF CREDIT, THE UCP600 AND DOCUMENTARY REQUIREMENTS

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MUHAMMAD WAJDI BIN FAUZI
0211123042

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Abdur Razzak
5202123005

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Individual Assignment Of Abdur Razzak (Newsletter)