Law and Institutions of International Trade

1. Law and Institutions of International Trade MGT 3860Z Fall 2005 Daryl Hanak

2. Administrative Issues • Grading • Midterm • October 21 • 2 hours • Combination of fill in the blanks, multiple-choice, short answer • Open book • 20% of Final Grade

3. Administrative Issues – Grading (con’t) • Term Paper • Due December 2 • Approx. 3000 words (plus end notes, bibliography, etc.) • E-mail submission OK, hardcopy preferred -- same deadline • 30% of Final Grade • Term paper topics is circulated to stimulate thinking • feel free to talk to me about other ideas as well (the earlier the better) • Coherent, original thought • Give credit to sources

4. Administrative Issues – Grading (con’t) • Final Exam • Friday, December 16 @ 5:00pm • 3 hours • Combination of multiple-choice, short answer, • open book • 40% • will cover entire course, not just the stuff after the midterm

5. Administrative Issues – Grading (con’t) • Written Assignments • Two 1-2 page notes -- No more than two pages, this is a strict length limit -- be economical and precise • due at the beginning of the class following the class they were assigned • Altogether, they will make up 10% of final grade • discussing a particular topic, issue, fact situation • Accuracy is important, but there will also be a focus on writing a clear and concise piece of work. • not looking for a heavily footnoted piece of work, but rather a short “memo” that is written as if you were trying to explain something to your boss or colleague at work. • May also be useful prep for exams and paper

6. Administrative Issues – Grading -- Summary • Midterm • October 21, 20% • Term Paper • December 2, 30% • Written Assignments • Two in the year (October 7, November 18), 10% • Final • December 16, 40%

7. Administrative Issues (con’t) • Make-up Classes?

8. Administrative Issues (con’t) • Readings & Resources • No required text, but • Hill, Charles WL., Global Business Today (4th ed), McGaw-Hill/Irwin (2006). ISBN 0-07-297371-4 • August, Ray, International Business Law – Texts, Cases abd Readings (4th ed.) Pearson Education Inc. (2004). ISBN 0-13-101410-2 • Jackson, John H., The World Trading System: Law and Policy of International Economic Relations, (2nd ed.) • .

9. Administrative Issues – Readings & Resources (con’t) • Handouts in Class • hard copies of miscellaneous, relevant articles, copies of texts of agreements and other materials. • reference to material available online, of which there is a great deal, particularly texts of agreements and treaties.

10. Administrative Issues – Readings & Resources (con’t) • Online Sources (eg) • World Trade Organization • www.wto.org • International Trade Canada (ITCan) • http://www.itcan-cican.gc.ca/menu-en.asp • United States Trade Representative (USTR) • www.ustr.gov • Concept Mapping • http://cmap.ihmc.us/

11. Administrative Issues – Readings & Resources (con’t) • Journals/Periodicals • Inside US Trade • International Trade Reporter • Journal of World Trade

12. Administrative Issues – Readings & Resources (con’t) • Other books • Trebilcock, Michael J. and Robert Howse, The Regulation of International Trade (2nd ed.) • Hart, Michael, A Trading Nation: Canadian Trade Policy from Colonialism to Globalization • Matsushita; Schoenbaum; Mavroidis; The World Trade Organization: Law, Practice, and Policy • Kennedy; Southwick (eds), The Political Economy of International Trade Law • Jones, Kent, Who’s Afraid of the WTO

13. Administrative Issues (con’t) • Contact information • Daryl HanakInternational Trade CounselAlberta Ministry of International and Intergovernmental Relations12th floor, Commerce PlaceEdmonton • E-mail: daryl.hanak@gov.ab.ca; dhanak@shaw.ca; daryl.hanak@uleth.ca • phone: 780.422.1339 (office/work); 780.473.4910 (home)

14. Administrative Issues (con’t) • Class Communications • Prefer e-mail, ofice hours on request • University of Lethbridge has an e-mail distribution list for each class, I found that to be an effective way of getting information to everyone. Please check your e-mail. • Questions/Answers relevant to the rest of the class, will be distributed to all • Slides distributed by email • Possible web/electronic distribution of documents

15. Class Outline • Subject to change, depending on particular interests • Focus is on the World Trade Organization and the NAFTA. They will be a strong Canadian/Alberta perspective. But US will also figure quite highly. • Trade cases that have Alberta connection – eg. softwood lumber, etc. to illustrate some of the principles involved in international trade regulation, with other significant cases. • WTO negotiations are ongoing, and we will try to put those negotiations into some context, and keep informed about progress in the WTO. • New vocabulary, acronyms. • My background is Government, but we will look at some practical considerations.

16. Class Outline (con’t) • What is international trade? • We will look at the trade in goods, services as well as investment. • Goods • Trade in physical goods is where most of the laws were originally conceived. • Services • Services trade has been growing at a greater rate than trade in goods recently, and electronic transactions have made international trade and services much simpler and cheaper. • Investment • Investment is another way for companies interested in selling their goods abroad to get into foreign markets. There are basic rules that have been negotiated between countries on the treatment of foreign investment.

17. Class Outline (con’t) • Why international trade and international trade regulation? • Economic theories • Mercantilism • Liberalism • Adam Smith • Comparative advantage • Historical context • Fur Trade to WTO 2005 • Bretton Woods Organizations

18. Class Outline (con’t) • Laws related to international trade • we will look at both the domestic laws and the international laws that govern or affect international trade. • Domestic Laws • Domestic laws are the laws that are passed by either Canadian federal government, the US Congress or the government of the states and provinces, and even municipalities and delegated regulatory authorities. • The governance of trade extends to regulations, policies, and procedures (altogether referred to as “measures”)

19. Class Outline (con’t) • "International law" • no international parliament or Congress or legislative body to pass laws to govern international trade, nor are there international trade "courts" that can truly enforce rulings on countries. • Multilateral trade treaties (primarily the agreements in the World Trade Organization WTO and in the North American Free Trade Agreement). • We will also consider bilateral or regional trade and investment treaties that Canada participates in. These are not necessarily "laws" in the sense of domestic laws, but they are agreements which countries are bound by. • When we consider "international Law" that governs international trade, we should also consider some of the international efforts to harmonize laws and commercial transactions (eg. Shipping terms, international contracts).

20. Class Outline (con’t) • Institutions Related to International Trade • Created by either the domestic law governing international trade or by the international treaties that countries negotiate amongst themselves. • Domestic • In Canada, we have the Canadian Customs and Revenue Agency which applies and enforces the tariffs and duties that Canada charges on goods coming into the country • The Canadian International Trade Tribunal which has the mandate, among other things, to apply Canada's antidumping and countervailing duty legislation. In this course, we will be looking at antidumping and countervailing duties and their usefulness as a trade remedy

21. Class Outline (con’t) • International Institutions • “secretariats” created by the various international treaties that carry out the administrative functions • Filing and circulating documents, organizing meetings, providing translation, providing some very basic research and information, conducting some "outreach" activities on behalf of policy members of the agreement. • Typically, these bodies are quite small. • These organizations do not order countries around, they have no power to force a country to do a particular thing. • Occasionally, countries may disagree on the interpretation of treaties. Usually this is solved by ad hoc arbitration. We will look at dispute settlement in some detail

22. Class Outline (con’t) • Negotiations • There are international trade negotiations underway in a number of forums almost constantly • governments, industry, NGO’s, and citizens interact in negotiations • Canada as a federal country engaging in international negotiations and how provinces participate

23. Class Outline (con’t) • "Trade and..." • Labour standards • Environment • Developing countries/development