in Regard to International Trade KOSTADIN KRASTANOV Ina Panov Adeline Gaspard Petrov Sorin Daniil goldin Kaloyan Ivanov International Law International law is a body of law formed as a result of international customs treaties and organizations ID: 242930
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Slide1
Major International Treaties in Regard to International Trade
KOSTADIN KRASTANOV
Ina Panov
Adeline Gaspard
Petrov Sorin
Daniil goldin
Kaloyan
IvanovSlide2International Law
International law is a body of law formed as a result of international customs, treaties and organizations.National law is the law of a particular nation
International law may be public, creating standards for nations
it may be private, establishing standards for private transactions that cross national bordersSlide3Sources of International Law
International customs evidences of a general practice accepted as law.
Treaties
and International
Agreement
a treaty
is an agreement or contract
between two
or more nations that must be authorized and ratified by the supreme power of each nation.
International
Organizations and
Conferences
refer
to an organization composed mainly of officials of member nations and usually established by treaty. Slide4Legal principles and doctrines
The principle of comity one nation will defer and give effect to the laws and judicial decrees of another country as long as they are consistent with the law and public policy of the accommodating nation.
The
act of State
Doctrine
is a judicially created doctrine that provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.Slide5Legal principles and doctrines
The Doctrine of Sovereign Immunity when certain conditions are satisfied, the doctrine of sovereign immunity exempts foreign nations from the jurisdiction of the US courts. However, a foreign state is not immune from the jurisdiction of US courts when it has:
waived its immunity either explicitly or by implication
engaged in commercial activity within USA or in commercial activity outside the USA that has a direct effect in the USA
committed a tort in the USA or has violated certain international laws. Slide6Doing Business Internationally
ExportForeign ProductionLicensing and FranchiseSlide7Export
Direct ExportA company signs a sales contract with a foreign purchases that provides for the conditions of shipment and payment for the goods.Indirect Export
If
sufficient business develops a company could assign employee as a foreign agent who would develop a marketing organization there.
Distribution
agreement
When
a company decides to appoint a distributor located in the foreign country.Slide8Manufacturing AbroadLicensing
Giving license to a foreign company to use a copyright, patent, trademarked intellectual property or trade secrets. Calls for payment of royalties(so many cents per unit produced; % of profits)
The firm that has the license profits from an already built product, name, reputation.Slide9Manufacturing AbroadFranchise
A type of licensing, that allows the licensed party to use trademark, trade name or copyright, under certain conditions and limitations. The return for the franchiser is a fee, based on % of gross or net sales.Slide10Manufacturing AbroadWholly Owned Subsidiary
Establishing a wholly owned subsidiary firm in a foreign country. Usually in Europe such ventures are in the form of societe anonyme, much similar to the US corporations.
Under
such subsidiary the facilities remain under the original company ownership, and total authority and control.Slide11Regulation of specific business activities
On investment On export control On
import control
To
minimize trade barriers Slide12Investment
Investing abroad is risky Expropriation Remedies
exist
Lump-sum
settlements
Guaranties
of compensation or insurances for citizens’ existSlide13Export controls
U.S Constitution Art 1 , sect. 9No taxes but use of other devices Quotas
Restriction
Incentives
and subsidies Slide14Import controls
Strict prohibitionNo illegal drugs, books insurrection against the U.S, no danger products , no products from enemies , no products that infringe the U.S patent
Quotas
and tariffs
Antidumping duties
International
trade commission (
ITC)
International
trade administration ( ITA)Slide15Minimizing trade barriers through trade agreements
Trade barriers = restriction on import Elimination of barriers = Essential World trade
organization
(
WTO)
EU
(
treaty
of Rome –
1957)
Common
market
Free
trade
zone
Council
of
ministers
European
court of justice Slide16Minimizing trade barriers through trade agreements
NAFTA ( 1994)Regional trading Canada , U.S, Mexico
Elimination
of tariffs and of citizenship requirement for licensing attorneys, accountants, physicians and other prof
.
CAFTA-DR
( 2005)
Costa
Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua and
U.S
Reduce
trade tariffs
Improve
market access Slide17The Sarbanes – Oxley Act
The Sarbanes-Oxley Act came into force in July 2002 and introduced major changes to the regulation of corporate governance and financial practice.The most important sections are
usually considered to be 302, 401, 404, 409, 802 and 906
.
Generally, this act is designed to improve the quality and clarity of financial reporting and auditing of public companiesSlide18The Sarbanes – Oxley Act302
Periodic statutory financial reports are to include certifications that:The signing officers have reviewed the report
The
report does not contain any material untrue statements or material omission or be considered misleading
The
financial statements and related information fairly present the financial condition and the results in all material respects Slide19The Sarbanes – Oxley Act401
Financial statements are published by issuers are required to be accurate and presented in a manner that does not contain incorrect statements or admit to state material information. These financial statements shall also include all material off-balance sheet liabilities, obligations or transactions.Slide20The Sarbanes – Oxley Act404
Issuers are required to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting. The registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial
reporting.Slide21The Sarbanes – Oxley Act409
Issuers are required to disclose to the public, on an urgent basis, information on material changes in their financial condition or operations. These disclosures are to be presented in terms that are easy to understand supported by trend and qualitative information of graphic presentations as appropriate.Slide22The Sarbanes – Oxley Act802
This section imposes penalties of fines and/or up to 20 years imprisonment for altering, destroying, mutilating, concealing, falsifying records, documents or tangible objects with the intent to obstruct, impede or influence a legal investigation.
This
section also imposes penalties of fines and/or imprisonment up to 10 years on any accountant who
knowingly
and wilfully violates the requirements of maintenance of all audit or review papers for a period of 5 yearsSlide23International Tort Claims
Recently International application of tort liability has grown in significance as an increasing number of US plaintiffs are suing foreign entities for the torts committed overseasOften, these cases involve human rights violations by foreign governments.The Alien Tort Claims Act (ATCA)
Adopted in 1789 and allows even foreign citizens to bring civil suits in US courts for injuries caused by violations of the law of the nations/ a treaty of the United States.
Lately, it has been substantially used to bring legal actions against companies operating in other countries, e.g. in cases related to environmental destruction.Slide24Case Study: Doe v. Unocal
In September 1996, four Burmese villagers filed suit against Unocal and its parent company, the Union Oil Company of California under the ATCA rules. The suits alleged various human rights violations, including forced labor, wrongful death, false imprisonment, assault, intentional infliction of emotional distress and negligence, all relating to the construction of the
Yadana
gas pipeline project in
Myanmar.
In 1997, a U.S. federal district court in Los Angeles agreed to hear Doe v. Unocal. The Court ruled that corporations and their executive officers can be held legally responsible under the Alien Tort Claims Act for violations of international human rights norms in foreign countries, and that U.S. courts have the authority to adjudicate such claimsSlide25Case Study: Doe v. Unocal
In 2000, the district court dismissed the case on the grounds that Unocal could not be held liable unless Unocal wanted the military to commit abuses, and that plaintiffs had not made this showing.However, Plaintiffs appealed this decision, and on September 18, 2002, a three-judge panel of the United States Court of Appeals for the Ninth Circuit reversed portions of the district court’s decision, allowing the lawsuit against Unocal to go
forward
After that, the parties announced that they had reached a tentative
settlement
, including
compensation for
plaintiffs and
provision for
funds enabling plaintiffs and their representatives to develop programs to improve living conditions, health care and education and protect the rights of people from the pipeline regionSlide26That’s all folks!
Apparently, the human body comprises about 70 percent of water, so without knowing your own rights, you’re just a sort of vertical puddle