International Trade Law deals with the rules and regulations that are required for carrying out international trade relations between different countries. The rules are also applicable for private companies that carry out trade relations with other companies across international borders.
International Trade Law is a division of the International Economic Law.
History of International Trade Laws
The modern laws on international trade is rooted in the law of merchants and the law of seas. The modern trade laws that included the multilateral treaty were formed after the Second World War. The treaty is most commonly known as the General Agreement on Trade and Tariff (GATT).
International Trade Laws have been formulated using the theories of economic liberalism that emerged in Europe.
The foundation of the World Trade Organisation was a milestone in its history. The international trade laws underlined the structure and function of the World Trade Organisation in the Marrakesh Agreement. The General agreement on Trade and Tariff basically contains rule and regulations pertaining to the control of illegal trade practices. The illegal trade practices include dumping as well as subsidies.
Settlement of Disputes
In case of any dispute that may arise between countries, the governments of the respective countries are supposed to hear the cases that are filed against them. An important issue that is a cause of dispute between the countries is the exchange rate. The Commerce Clause basically solves the disputes. The fluctuation in the exchange rate may benefit some countries while other countries may run at a loss. The trading countries list the expected changes in the exchange rate till the contract expires and accordingly they can reassess or divide the contract.
Last Updated on : 18th July 2013