Development A response in many countries to the 1930s Great Depression was the raising of the tariff wall. Most western European countries raised tariff barriers. Overall output suffered, and it was felt that the process exacerbated the Great Depression. The United States entered into bilateral trade negotiations with partners to reduce tariffs, commencing in the mid-1930s. After World War II, protectionism came to be seen […]
Overview Efforts to harmonise international commercial law date back to the 19th century. Originally the harmonisation of conflicts of law and commercial law rules occurred by way of multilateral and bilateral treaties and conventions. This required the states which ratified them to adopt them into their domestic law. Within the United States, model laws have operated to harmonise commercial law across most states. Within the […]
MNCs A relatively small number of multinational companies and organisations account for a significant proportion of all trade. The organisation of multinational enterprises varies, although there are certain common structures and issues. A national, multinational enterprise consists of a firm established in one country with wholly owned subsidiaries or with branches in other countries. An international multinational enterprise comprises several different firms in different countries […]
GATS The General Agreement on Trade in Services commenced in 1995, simultaneously with the establishment of the World Trade Organisation. The new GATT and the General Agreement on Trade-Related Aspects of Intellectual Property Rights commenced at the same time. GATS consists of three related elements, the Framework Agreement annexes dealing with particular sectors and schedules of national commitments, which each member has agreed to take. […]
General Where a sole trader, partnership, or corporation has activities in more than one state, issues will arise regarding taxation in each state. States usually levy tax on the basis of the worldwide income of their residents and also tax income from activities conducted within their borders. This leads to the possibility of double taxation. Most states levy taxes on individuals and entities in respect […]
GATT The 1994 General Agreement on Tariffs and Trade (GATT) modernises and updates the original GATT 1947 agreement taking account of the changes and developments over the various rounds since then. In strict terms, the World Trade Organization is not the successor to the old GATT organisation and does not service the old GATT agreement. In practice, GATT 1994 has replaced GATT 1947. Most of […]
Technical Barrier Agreement The WTO agreement on technical barriers to trade sets out rules and principles for the member states in the preparation, adaptation and application of technical regulations and standards. The purpose is to ensure that they provide the appropriate standards of protection for the life and health of humans, plants and animals and the environment and prevent deceptive practices while not creating unnecessary […]
Subsidies Subsidies are payments and contributions made by states and other public bodies that benefit businesses, enterprises or industries. They may include grants, loans and soft investments. They may include loan guarantees, tax credits, the provision of goods and services and price support. They may be made directly or indirectly through private bodies or otherwise. If subsidies have an unreasonable impact on the third country’s […]