The International Trade Law Essay Example

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25INTERNATIONAL TRADE LAWS

The International Trade Law

International Trade Law

Introduction

The internal trade law refers to the rules and regulations governing the global market and businesses that enacted by different trade bodies like World Trade organization (WTO) to ensure free and competitive economy. It contains appropriate customs and rules that handle theSchaffer v Augusti, (2002)
19 5th edition, (book) west publication trade between two or more nations or between private countries across borders that have their governments being part of the Sacks, v Malbon, J (eds) (1992) 211(Case)
Princeton Publication world trade and members of World Trade Organization1. It combines the domestic laws of nations with Seer v Smolke-Day, (1996) 67 Oceana publications
(book) public international law that relates to transactions for goods or services that go through the national borders. The ultimate Chuah, JCT (1998) 78 (book)Sweet and Maxwell publication, London aim of this context is to examine the role and nature of the International trade law, outlining its legal framework as well as looking at the skills used for the interpretation of relevant instruments of the international trade law. The paper also examines the legal problems that arises in international trade law and their resolutions, looks at the disputes and their resolution strategies and mechanisms2. Lastly, it inspects the policy issues underlying the international trade system. Above all, the paper examines the how the trade cycle is being broken in each concept mentioned where the effective punishment takes place, the rehabilitation process as well as the sentencing process. These are very crucial because most of the time individuals normally do some things intentionally with an aim of wanting to see what may happen.

Roles and nature of the International Trade Law

When the Schaffer v Augusti, (2002)
102 5th edition, west publication (book) World War II ended, the General Agreement on Tariffs and Trade (GATT) came about with other important documents in regard to the International trade laws. GATT came into existence in 1947 when the negotiating governments failed to come up with the International Trade Organization. It worked until 1994 when it was replaced by a more and organized system. The World Trade Organization (WTO) was created in 1995 to replace the GATT to supervise, regulate and liberalize international trade3. The effect of WTO was highly felt as it started supervising the trade between the involved nations as well as setting the basis for negotiation and formation of trade agreements. It should be clear that the negotiation process is very significant to be employed whenever two or more trade partner countries develop a dispute, which may end up breaking the trade cycle among these countries. It is dangerous Pryles v Waincymer, Thomson Lawbook (2004) 7- book, longman publication, Sydney since it may involve the process of effective punishment, rehabilitation, and sentencing of offenders involved. Therefore, keeping in mind such important issues normally leads to development of good trade agreements under the help of the world trade organization that actually ensures that the agreement is set.

The World Trade Organization has also set dispute resolution process that may deal with the initial trade negotiations4. Before this, there was the Burnett v Bath, Federation press 2009, 98- book, London United Nations Commission on International Trade Law (UNCITRAL) that had been formed in 1966. In 2002, its membership reached 60 member states with Carr, I (2005) 212 14- case African states, 14 Asian states, 8 Eastern Europe states, 10 Latin American and Caribbean states and 14 western European states. There are three levels in UNCITRAL; the Pryles v Waincymer, Thomson Lawbook (2004) 70-book, longman publication, Sydney inter-governmental working groups, the commission, and the International Trade Law Division of the UN office legal Affairs which assists the other two groups. The incorporation of all these nations by UNCITRAL has been successful in building the trade cycle amongst the member states. Coordination and partnership of two or more countries has lead to an efficient trade among the nations where the importation and exportation of products has been prominent with both countries benefiting out of it.

There is just one international trade law that stands as one of the most successful international systematic laws. This is the,
Seer v Smolke-Day (1996) 146 – book, Oceana Publication Contracts for the International Sale of Goods (CISG) from the United Nations Convention. The treaty serves 74 member countries and it gives a compatible international sales law. It is the UNCITRAL that created the CISG in 1980 and it has been very successful to be referred to as the unified document in international sales law5. Strictness has been the key factor where the law must be followed by the member states. In case at a certain point it failed, then the trade cycle is considered broken whereby the process of effective punishment comes in accompanied by the rehabilitation and sentencing of offenders as well. The state nations involved in such a dispute however, are given the opportunity to carry out the negotiation process whereby they can come to an agreement and go on with the trade partnership. In case the negotiation process fails then the process of effective punishment must be undertaken by the use of the legal international trade law courts.

Most countries out of the 74 Burnett v Bath, Federation press 2009, 108- book, London account for a considerable sum of trade in the world. However, there are some which are as well considered great but have not been approved by the CISG. These are South Africa, the United Kingdom, India and Brazil. Though they are not members, the International Trade Law remains the most successful document in international sales law and international trade law history. Besides, there is still hope that the absentee nations will join due to its success, efficiency and achievements as well as strategies. Nevertheless, these states are also missing the huge benefits of the trade union among the member states of UNCISTRAL. It is no doubt that the trade among these countries is great since their marketing strategies and the importation and exportation processes have expanded extensively and they are highly benefiting out of it. There are other documents that will be written that will attract these countries as the preexisting documents have dealt with the initial work for the future ones to perfect the operations of member countries in trading goods beyond boarders through land and across oceans. At the end, there will be a smoother ride for these countries due to constant organized, unimpeded flow of trade throughout economies6.

The International Trade laws have various roles that they plays to improve the performance of member states in international trade. To begin with, these bodies (WTO, UNCITRAL) ensure that there is business link among these countries whereby movement of goods from one country to another becomes easy. This in turn improves the economies of these countries due to efficiency in business with partner countries. This means that after a period of time, all the member states shall have their economies stabilizing thus enabling them to develop extensively and increase their market strategies by expanding them. They also provide education and training to the member states about the tactics and effective modes to be employed in business thus increasing their business performance. For example, the incorporation of the law has made over 250 Chinese judges be trained on WTO. It has also assisted the Jordan government to draft its final offer to the WTO concerning the GPA. The law also plays a major role in cooperating and or attracting other states that are not members of WTO or UNCITRAL7. For example, it leads to a six-month training program for a group of Chinese lawyers from the province of Zhejiang looking into trade and commercial law. It has assisted the Armenian government in trade policies development and implementation of WTO technical trade barriers agreement.

The legal framework of International Trade Law

The trade legal framework refers to the trade agreements that facilitate the international trade among the member states. The international trade bodies ensures that the laws laid down are well understood by the member state and are as well followed to the later. Failure to comply with them, this is when the punishment, rehabilitation and sentencing of the offenders comes. The member state that fails to comply with the laws has to punish in accordance to the laws laid down by the international trade bodies8. Note that the state may be as well complying to those obligations but partially meaning that it may be ignoring some important concepts. It may as well be involving certain leaders who mislead the others or are not reinforcing the laws to the local markets of the state. These same people are punished in accordance to the rules of the international trade. After they have been punished by the law, they are then taught the concepts they had not understood as well as being informed the importance of obeying the rules and agreements laid down. This is now the rehabilitation process.

The United States obligations of trade acquired from the international trade agreements among them being the General Agreements Burnett v Bath, Federation press 2009, 125- book, London on Tariffs and Trade (GATT), the World Trade Organization (WTO) agreements and regional trade agreements and additional bilateral as well as domestic laws intended to implement the US trade policy goals9. Among the federal agencies and units discussed include the international trade administration (ITA), the Sarachek, Darwin press (1994) 212 – Case, New York United States, United States Court of International Trade (CIT) and the United States Customs and Border Protection (CBP).

The international regime that should govern the bio-fuels trade are still in their youthful stage. Several countries however, have laid down minimal blending bio-fuels goals, which will only be met by having great productions, and increased international trade in bio-fuels. There are some concerns that exist whether the growing demands will be met by the unsustainable practices. Currently, there is no any multilateral agreement governing the bio-fuels trade and sustainable production. When there is an absence in International framework, the countries involved may independently regulate the imports of unsustainably produced bio-fuels as per the international trade rules10. The one-sided regulation should be taken as a stop gap until the multilateral agreement can be settled on bio-fuels interaction with issues of sustainability.

In Austria, there were a number of legal frameworks raised with the commission by the Australian firms investing and trading outside Australia, lawyers, government agencies, and others with interest in Australia’s international commerce. Some of the issues concerned include the arbitration or insolvency administration and procedural difficulties in litigation. The service of process outside Australia usually gives the Australian firms difficulty in initiating legal proceedings, in acquiring evidence overseas and in getting them admitted in Australia as well as congealing benefits pending a hearing. Other issues arte concerned with substantive law. The international systems of payments, bank confidentiality and privacy, the set off law, tracing and restitution and security interests in out of Australia property are issues concerned with financial law15. The legal frameworks concerning the electronic commerce include the data security issues, evidentiary intellectual property, and content regulation. There are some of the issues that can be addressed quickly with minimal further consultation like the some of the procedural issues. Others normally require complicated analysis and consultation11. In order to understand this concept well, it is important to consider how this legal framework has been functioning in different states. Some of these states include Honduras and the Vietnam.

Honduras is one of the nations with essential international trade conventions in place. The state has the regional integration commitment with many free trade agreements. it joined the international trade law through becoming De Cruz, (1995) 140-case, Cavendish press, London
a member of the world trade organization in 1995 as well as becoming a charter member of the general treaty on the central American Economic Integration (CAEI). It has been a member for about four decades and it is very committed to the functional customs union. Therefore, it can never find itself among the member states that may be punished and undergo the rehabilitation process whereby if they ignore again, they are sentenced in accordance to the agreement regulations. Honduras has free trade agreements with Chile, Mexico and the Dominican Republic and all of them are Klotz v Barrett, (1998) 166 – book, Cameron publication members of the world trade organization which is the main body of the international trade law. It exports its products to Europe, Japan and the United States. All the process is done duty-free under the GSPs that is independently laid down by those destination markets.

Its customer practices and rules, which include the phytosanitary and sanitary controls as well as the custom agency effectiveness of Honduras, are well explained under the international movement of goods and services. This means that the international trade laws and practices are not fully implemented in Honduras to take the recent events in the area. Therefore, the recent rules have not been incorporated effectively into the trade system of the nation and its functioning national regime for international trade is still not effective. The CAFTA advent could work out as incentive to such reforms12. The country’s current international trade law framework is well illustrated by its luck of administrative and legal structures for the countervailing duties application. The standards for respectful trade in goods are set by the world trade organization by giving permission to the recipient countries to inflict tariffs. These can do away with the rude and dishonest Klotz v Barrett, (1998) 166 –book, Cameron publication competitive advantages that may have been gained by imports through subsidies in the country they come from or through going at a lower price than in their home market.

The standards of the world trade organization must be implemented by the member states through coming up with the national regime of administrative and law procedures. This are the agreements standards between the trade partners or nations which must be complied with and should not be disobeyed. For example, Honduras is a trade partner to Mexico, the United states and Chile, they must comply to the standards set by the WTO which when broken, they undergo the punishment and rehabilitation processes13. Note that the WTO has no original enforcement mechanisms to the standards it sets as well as to the review process it provides in a case where an affected nation can challenge their application by a given country in a specific case. If that specific nation fails to broadcast the laws and the administrative procedures of the institute where it may intrude countervailing duties, the goods importation to that particular country will never suffer countervailing duties. It doe not matter how normal a subsidy or dumping may occur in an imported good case.

The negotiation basis are frequently provided by the countervailing duties enforced by the national administrative process14. They take place between the importing country and the exporting country that lead to minimization of countervailing duties on many products that move in both directions and that achieve benefits in both countries. This is the basis of the international trade. All the participating countries should be Sacks, v Malbon, J (eds) (1992) 211- book, Princeton publication benefiting in one way or the other. Note that this is only possible if the international trade laws are followed well. When they are disrespected or disobeyed, it is very difficult to achieve such benefits. Moreover, the participating countries may end up breaking up their partnership, which may as well lead to facing the consequences of failing to comply by the rules. These consequences are definitely punishment and the sentencing process which may be accompanied by the rehabilitation process afterwards. Therefore, the effective punishment is one that engages the trade laws and policies. The laws and policies were meant to be followed not disobeyed and by so doing, the cycle is being broken.

In order for the member states to participate in the negotiation process, each of them Klotz, JM v Barrett (1998) 180 – book, Cameron publication must have its own national trade law system or else it will fail to have the countervailing duties from which to negotiate. This means that the exporters from trade law free country must undergo the countervailing duties against their products due to lack of negotiation relief, while the other country continues to send subsidized and dumped goods as it enjoys the market immune. Therefore, it is important to embrace the negotiation process incase the two trading countries are not comfortable with the system each country employs. Honduras and other countries in the central America have no effective systems that can be used to apply the countervailing duties as well as other world trade organization standards that govern the imported goods15. An administrative staff is required by a viable system to carry out economic studies and to tackle the countervailing requests by deciding whether dumping or subsidy exists, whether it injures the national production effectively and it that is the case, what are the countervailing duty that might be due to proper level. Systems like these ones are very expensive but very significant to full participation by any nation’s importers, exporters and the national producers found in the international market place.

In order to find the solution for this situation, the countries in the central America advanced in their trial to come up with a custom union and a common market, could come together to construct a regional administration that might tackle the requests made by the member countries about the countervailing duties. Therefore, it is of great significance for countries to join hands under certain agreements or legal framework and carry out joint business through exporting and importation of goods and services where all the member countries benefit. They should as well have countervailing duties, which help them incase a problem, occurs on the way where they can solve the problem through negotiation. This is now the process of mending or building up the cycle. In case the rules are not fully followed by one of the partner countries and the negotiation process fails, then the cycle will have broken and the process of effective punishment, rehabilitation and sentencing may have to take place.

Skill interpretation of relevant instruments of International Trade law

In order to understand the interpretation skills of different relevant instruments, it is important to identify the instruments talked about. There are various instruments that are used to reinforce the international trade laws16. They are the basis for the effective punishment of the member state that fails to comply with the laws; they also help in the rehabilitation process as well as the sentencing process. These instruments are as follows. The international court of justice located at the Hague is well known world wide Sacks, P & Malbon, J (eds) (1992) 176 – book, Princeton publication. The international tribunal for the law of the sea that deals with cases that involves exportation and importation of goods overseas, Sacks, P & Malbon, J (eds) (1992) 176 – book, Princeton publication. The international criminal tribunal for the former Yugoslavia, the international criminal tribunal for Rwanda, International criminal court well known for sentencing the offenders and great criminals as well as the United Nations Administration of justice. Other principal legal bodies specifically used Ramberg, (1997) 181- case, Sydney
by the United nations include the international law commission, the legal documentation treaties, the sixth committee of the Ramberg, (1997) 181- case, Sydney
General Assembly and the united nations commission on international trade law. Note that these are only used by the Ramberg, (1997) 181- case, Sydney
members of both the World Trade Organization and the United Nations17. All these instruments are used in ensuring that the international trade law is well followed by the member states. Note that in the sentencing of the offenders, the other instruments that employed is the prison where the offenders are kept.

The main function of the international courts is to enhance effective punishment to the offenders who disobey the rules of the international trade. The judges make sure that justice is attained by the countries that are offended by their partners in the business field through importation and exportation process. However, this process comes after the conflicting states have undergone the negotiation process and failed to reach a solution18. The rules of the international trade states that the case will be solved by the legal instruments when the negotiation process fails to work out. The rehabilitation process follows after the offenders have been jailed where they go to work for the governments of specific county in order to attain respect and obedience.

In order for an individual Sacks, v Malbon, J (eds) (1992) 222-book, Princeton publication to win one hundred victories in one hundred battles is not the acne of skill. To win the enemy without fighting is the acne of skill. Much skill is required in taking care of the letters of credit and other instruments of payment required in international trade. The existing URC, ISBP, UCP, ICC, URDG, ISP as well as publication from ICC come up with the rules and guidelines but still there are some questions that remain unanswered. When new rules are updated, there are new problems, which arise as well that require clarification and education. Therefore, it is important to note that information is required to succeed and prevent occurrence of problems. In order for a person to Sacks, v Malbon, J (eds) (1992) 224 – book, Princeton publication understand the international law structures and mediates, the international life deployment of power, then there is the need to be familiar with the relationship between law and knowledge or skills. In order to understand well this concept, there is a case study on international legal regime governing international trade service is considered. It also considers the Norton v Foster (eds), (1994) 251- book, longhorn publishers world trade organization’s general agreement on trade in services. The international law body has developed over the past fifteen years as well as evolving alongside the bodies Norton v Foster (eds), (1994) 251- book, longhorn publishers of social scientific expertise on the dynamics and nature of the global services economy.

Legal regime and law have been present in knowledge production processes thus shaping the dynamic understanding of the global economical services in some ways19. The international trade has got laws that govern it and in order for these laws to be effective and efficient, there must be some skills involved in its application. Therefore, the relevant skills must be applied to reinforce and implement the rules correctly in order to deal with the nations or individuals that break the laws.

The Legal Problems Arising in International Trade and their Resolutions:

Effective Punishment, Rehabilitation and Sentencing of Offenders

The best way of dealing with the offenders or the prisoners is not keeping them in jails; it is using the jails as places of hard work as well as coming up with the rehabilitation programs. People open them up to modernize the jails from private and charitable sectors whose main objective is minimizing the reoffending after they have received punishment. This issue must be addressed as it affects the trading systems Klotz, JM v Barrett (1998) 192- book, Cameron publication
in one way or the other. The people involved in trade sometimes do misbehave or break the rules or laws of the trade thus; they need to face such punishments. All the member states involve some citizens in importation and exportation of products. For, example, when a country grows coffee, it is the farmers who are the citizens of that particular country carrying out the action of planting and cultivating them as well as being involved in exportation programs. Therefore, when such people fail to follow the trade laws, the punishments comes in.

The safety of the law-abiding citizen is the main objective of the reform programs. Prisons will remain the Schaffer, Earle, v Augusti 5th ed (2002) 178- book, west publications best place to keep the serious offenders with a renewed rehabilitation focus after the criminals are through with serving their punishments. This helps to stop reoffending that disfigures the lives of people and the communities20. Though there was an increase of 50% Sacks, v Malbon, J (eds) (1992) 241- book in the budget for prisons and offenders management in the last ten years, almost half of the adult offenders reoffend within one or two years of being released from prison. There will be as well Norton v Foster (eds), (1994) 266-book, longhorn publication new measures to strengthen criminals to make amends to victims and communities for the harm they have caused. This helps to reduce the number of offenders and criminals as they end up getting scared of the consequences that may befall them in case they repeat illegal actions that are oppose the trade laws of the country or the world. This is because when the citizens of a particular Schaffer, Earle, v Augusti 5th ed (2002) 179- book, west publicashing country that is a member of the WTO breaks the trade laws, they normally shame their country’s government in the WTO or UNCITRAL. Therefore, majority of these countries punish such offenders or criminals so that they do not repeat the same mistake.

The trade bodies usually urges the member states to imprison the offenders and criminals as they are a threat to the society which expects Sacks, v Malbon, J (eds) (1992) 241-book, Princeton publications the criminal justice system to protect them21. The prisons should as well Sacks, v Malbon, J (eds) (1992) 241-book, Princeton publication be places of hard work and industry and community sentences must be credible and robust. The criminals need to change as well when they get through with their sentences so that they avoid getting back to crime and create more misery for victims. This must stop and solving it requires another different approach. These include making the offenders work hard and sweat through De Cruz, (1995) 170- case, Cavendish press, London discipline of normal working hours in prison, greater use of tough curfews and doing more demanding tasks in the community. Another approach entails De Cruz, (1995) 170 – case, Cavendish press, London rehabilitating the offenders by getting them off the drugs and benefiting them through honest work. It is also important to increase compensation to the victims through implementation of the prisoner’s Earning Act, massive use of restorative justice and implementing other actions to make the offenders to compensate the victims directly. Implementation of these principles and others that are not mentioned will lead to Fisher v Fisher, Federation press (1998) 201-book
a change of direction in penal policy that will emphasize on limiting reoffending without reducing the offenders’ punishments. The cycle will only break when more criminals are reformed and turned away from the criminal life22.

Therefore, there is no doubt that the offenders in the international trade can be rehabilitated through the same process and become the best participants in the international trade. The trade individuals from different countries can be rehabilitated from their criminal nature to great and potential business partners who can promote the market of a country to other interested nations. Note that the market place is full of criminals especially the business people themselves. They normally have the tender of stealing from their customers if they are not keen. The same thing they apply when importing or exporting products and this is what contributes to disputes between different trade partner countries. Therefore, the best solution as mentioned above it to deal with these criminals and offenders using the effective punishment process, rehabilitation and the sentencing of the offenders23.

Dispute minimization and resolution strategies and mechanism

it is clear that the instruments of the international trade must be applied especially the court system. Folsom, Gordon v Spanogle, (1995) 142- book,West Publishing effective punishment, rehabilitation and sentencing of offenders. Having said so, Folsom, Gordon v Spanogle, West Publishing (1995) 142- book Disputes are predictable and to be anticipated part of carrying out business in the commercial world. In order to resolve such matters, strong dispute litigations and tactical thinking must be employed. The Bowen Buchbinder Vilensky litigation and dispute resolution lawyers provide a full range of litigation and dispute resolution services over a wide industry range such as shareholder disputes, property disputes or construction disputes. Note that disputes are parts and parcel of the breaking of the trade cycle among the trading partners. Most of the time when disputes occurs, the relationship between such countries is affected and the trading process is interfered. Most of the disputes in the trade sector are solved by the process of

. 24In order to minimize clients’ risks, the lawyers inform them about their prospects in a dispute very early. The lawyers focus on designed strategies through alternative resolutions of disputes to prevent litigation and achieve good commercial outcomes and solutions for wide range of clients. There are various trade disputes that occur in business and some of them include the commercial and contractual disputes, trade practices and competitions, medical negligence, professional indemnity and liability and product and public liabilities. Others are insolvency, arbitration and mediation, local government issues, shareholder disputes, franchising disputes, property and leasing disputes, building and construction disputes as well as contractors and officers’ liabilities

most dispute resolutions are determined by jurisdiction. Each individual country hears and respects the cases that are brought to them. Most governments choose to be part of a dispute. The private citizens determine jurisdiction by the Forum Clause in their contract. In order to acquire remedy measures, caution must be proven as it is the legal element to be considered. Other than forum, there is the rate of exchange, which is also a factor of international disputes. There can be changes in the market brought about by parties that list the exchange rate expected over the contract life through division of exchange rate or reassessment of contract. The Australian Institute of Export (2000), The Export Handbook, 17th edn- book Because there are no international governing judges,

. The appellate body was asked to decide whether the panel gone against the Dispute Settlement Understanding (DSU) in departing from its conclusions. It formerly had turned down the rule on the issue but its discussions of WTO suggest potential strengthening of the doctrinal expectation that panels will stick to the report by Appellate body.25with dispute settlement jurisprudence has for a long time been a subject of vagueness. Despite the WTO panel adopted solutions and Appellate Body reports being only formerly binding to particular parties and matter in a dispute, they are cited by a third party in legal arguments or supporting conclusions. The substantive and procedural doctrines have developed from organic development practice. According to Appellate body, the initial Appellate ruling by WTO panel are appropriate and expected. The Appellate body reversed a panel report recently in the US stainless steel in Mexico and the panel report had moved away from the Appellate body’s dumping jurisprudence by finding simple zeroing. Zeroing is a method of calculating dumping margins that are dependable by General Agreement on Tariffs and Trade (GATT) 1994, the WTO anti-dumping agreementPryles, Davies, v Waincymer, Thomson Lawbook (2004) 217-book, Longman publication The World Trade organization precedential nature that deals

Eventually the Appellate Body looked back and reviewed the relevant provisions text where it suggested that the export-oriented language of Article VI of the GATT and the Anti-Dumping Agreement confirmed the specific export nature of dumping. Therefore, the Appellate Body rejected the panel’s conclusion that the transaction specific dumping concept was a permissible reading. Its argument therefore regarding the US zeroing was that the broad requirement of anti-dumping agreement should not go beyond the margin of dumping. Eventually, the Appellate body found the simple zeroing impermissible.

. If the service provider has its own Code of conduct or has signed up to general code of good practice for resolution and prevention of disputes, publicizing this fact and making it visible. Lastly, it is important to have preventive market mechanism.26 The disputes can be resolved in a number of ways. To begin with, they can be solved through establishing internal initial dispute resolution. This is done by setting up in-house systems for tackling disputes discreetly and quickly, informally and amicably that leads to confidence generation as well as limiting damage to reputation. Another one is that if a person elects to include arbitration or mediation clauses in agreements that comply with the rules governing pre-formulated standard agreements with general conditions. Besides, if the service provider is a member of a dispute resolution system like consumer arbitration, it is crucial to make this fact visible as it increases confidence in transaction

Policy Issues Underlying the International Trade system

The existing surveillance mechanism adequacy due to dissatisfaction has led to the members of GATT to consider possible improvements. Besides, most countries are not only concerned with obtaining direct trade advantages but also in strengthening the ability of GATT to present and future developments in the international trade and financial issues to strengthen the institution powers of GATT. These are means used to amend the trading cycle where the member states can enjoy the fruits of becoming members of the World trade Organization where they abide by the international trade laws. Therefore, the negotiations in Uruguay put the functioning of GATT system into three main aspects: first, to enhance GATT’s trade policies surveillance, practices and their impacts. Second, it improved the decision-making and effectiveness of GATT as an institution. Lastly, it enabled GATT to play a very active role in global economic policymaking. The trade policies are very crucial especially in providing a clear implication of the member states in the trade union27.

Through these policies, it is easy to identify the countries that are serious in carrying out trade with other countries as well as those that are not much focused on the trade with particular countries. The rules laid down by GATT are as well reflected by the trade policies in different countries through the seriousness shown by such countries. The main Pryles, Davies v Waincymer,Thomson Lawbook (2004) 227- book, Longman publication objective of the trade policy review mechanism is to enhance transparency and understanding of the trade policies of all members as well as allowing for an individual trade trends and policies other than looking into the legal compatibility of any GATT rules measures. Thus GATT also helps in mending the trade cycle especially when the rules and measures set are met by the member states. Through the implementation of the trade policies, the effective punishment, rehabilitation and sentencing of offenders is not mostly heard or observed28.

Most countries believe that the trade review mechanism would enhance the individual trade practice assessments within the wider financial environment and context of the external trade40.

Improvement of GATT’s effectiveness has focused majorly on massive involvement of minister on its work. There have been ten GATT meetings at the ministerial level that have been held in the past three decade29. There is an argument that frequent minister participation could lead to political initiative and guidance, reinforce the commitment of government, give GATT a massive prominence and credibility in domestic political arenas, as well as enabling better trading monitoring trends against the wider political and economical context background. The periodic ministerial sessions of all GATT members has got broad support with full decision making powers. However, there are divided views about the size and composition of a possible smaller group of ministers who would be meeting frequently. They would be playing an advisory role to look upon trade developments and policies before submitting them for full deliberation in GATT. It should be clear that the GATT is majorly viewed as a contract rather than an organization and therefore the concept of regular meetings with ministers representing certain constituencies the same way it is done on Fund’s executive board has not had much support from the GATT members.

Conclusion

The internal trade law refers to Burnett v Bath, (1998) 56-book Federation press the customs and rules that handle the Fisher v Fisher, (1998) 56-book Federation Press trade between two or more nations. It can also be between private countries across borders that have their governments being part of the Folsom, Gordon, v Spanogle, (1995)78-book, West Publishing (1995) world trade and members of World Trade Organization. The member states must comply by these rules and customs which when broken, it is termed as breaking the cycle which involves the Fisher v Fisher, (1998) 111-book Federation Press effective punishment, rehabilitation and sentencing of offenders. It combines the domestic laws of nations with Schaffer, Earle v Augusti, West Publishing (2002) 102-book public international law that relates to transactions for goods or services that go through the national borders. The UNCITRAL and the WTO that works hand-in-hand to ensure that the member countries participate fully and improve their performance formed the Norton, Andenas v Foster (eds), (1998) 101-book, Longhorn publishers international trade law30. The legal framework of the international trade law refers to the trade agreements that are set between different trade bodies which then work together to enhance and promote business in their respective countries.

The trade agreements are set by the world trade organization though it is not responsible of taking effective measures to the member states who do not comply to the standards it sets. It leaves all the matter to the involved states which undergo the negotiation process. When they fail to come to an agreement about the trade matters, then the cycle is said to be broken where the system involves Seer v Smolke-Day, (1996) 201-book Oceana Publication the effective punishment, the rehabilitation process and the sentencing of offenders. The effective punishment and the sentencing of the offenders involves the instruments of the international trade law which include the international criminal courts and courts of justice. The conflicting parties undergo the legal hearing of the case where the results leads to solution solving. The other instrument used at this point is the prison or jail where the offenders may be kept if they fail to meet the charges. It is through the hard work and punishments given at the prisons that the offenders are rehabilitated.

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