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{{Short description|Rules for trade between countries}} |
{{Short description|Rules for trade between countries}} |
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'''International trade law''' includes the appropriate rules and customs for handling trade between countries.<ref>{{Cite web |url=https://www.law.berkeley.edu/library/dynamic/guide.php?id=60#toc0 |title=International Trade Law |last=Library |first=University of California Berkeley School of Law |website=www.law.berkeley.edu |access-date=2016 |
'''International trade law''' includes the appropriate rules and customs for handling trade between countries.<ref>{{Cite web |url=https://www.law.berkeley.edu/library/dynamic/guide.php?id=60#toc0 |title=International Trade Law |last=Library |first=University of California Berkeley School of Law |website=www.law.berkeley.edu |access-date=1 May 2016 |archive-date=4 June 2016 |archive-url=https://web.archive.org/web/20160604174146/https://www.law.berkeley.edu/library/dynamic/guide.php?id=60#toc0 |url-status=dead }}</ref> However, it is also used in legal writings as trade between private sectors. This branch of law is now an independent field of study as most governments have become part of the world trade, as members of the [[World Trade Organization]] (WTO).<ref>{{Cite web|url=https://www.law.georgetown.edu/your-life-career/career-exploration-professional-development/for-jd-students/explore-legal-careers/practice-areas/international-trade-law/|title=International Trade Law|website=www.law.georgetown.edu|language=en-US|access-date=26 September 2019|archive-date=26 September 2019|archive-url=https://web.archive.org/web/20190926120805/https://www.law.georgetown.edu/your-life-career/career-exploration-professional-development/for-jd-students/explore-legal-careers/practice-areas/international-trade-law/|url-status=live}}</ref> Since the transaction between private sectors of different countries is an important part of the WTO activities, this latter branch of law is now part of the academic works and is under study in many universities across the world.<ref>{{Cite web|url=https://legalcareerpath.com/international-trade-and-finance-law/|title=What is International Trade Law? {{!}} Becoming an International Trade Lawyer|language=en-US|access-date=26 September 2019|archive-date=26 September 2019|archive-url=https://web.archive.org/web/20190926120807/https://legalcareerpath.com/international-trade-and-finance-law/|url-status=live}}</ref> |
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==Overview== |
==Overview== |
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International trade law should be distinguished from the broader field of [[international economic law]]. The latter could be said to encompass not only WTO law, but also law governing the international [[monetary system]] and [[currency]] regulation, as well as the law of [[international development]].<ref>{{Cite web|url=https://untobaccocontrol.org/kh/legal-challenges/trade/international-trade-law-relevant-fctc-implementation/|title=What is international trade law and why is it relevant to WHO FCTC implementation?|date=2017 |
International trade law should be distinguished from the broader field of [[international economic law]]. The latter could be said to encompass not only WTO law, but also law governing the international [[monetary system]] and [[currency]] regulation, as well as the law of [[international development]].<ref>{{Cite web|url=https://untobaccocontrol.org/kh/legal-challenges/trade/international-trade-law-relevant-fctc-implementation/|title=What is international trade law and why is it relevant to WHO FCTC implementation?|date=7 April 2017|website=WHO FCTC Secretariat’s Knowledge Hub on legal challenges|language=en-US|access-date=26 September 2019|archive-date=26 September 2019|archive-url=https://web.archive.org/web/20190926120803/https://untobaccocontrol.org/kh/legal-challenges/trade/international-trade-law-relevant-fctc-implementation/|url-status=live}}</ref> |
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The international trade law includes rules, regulations and customs governing trade between nations.<ref>{{Cite journal|last=Warburton|first=Christopher E.S.|date= |
The international trade law includes rules, regulations and customs governing trade between nations.<ref>{{Cite journal|last=Warburton|first=Christopher E.S.|date=30 March 2010|title=International trade law and trade theory|url=http://dx.doi.org/10.1108/14770021011029618|journal=Journal of International Trade Law and Policy|volume=9|issue=1|pages=64–82|doi=10.1108/14770021011029618|issn=1477-0024}}</ref> International trade law is the tool used by the nation’s government for taking corrective actions against trade. International trade law focuses on applying domestic rules to international trade rules and applying treaty-based international trade law governing trade.<ref>{{Cite web|title=International Trade Law|url=https://www.law.georgetown.edu/your-life-career/career-exploration-professional-development/for-jd-students/explore-legal-careers/practice-areas/international-trade-law/|access-date=20 July 2021|website=www.law.georgetown.edu|language=en-US|archive-date=1 August 2021|archive-url=https://web.archive.org/web/20210801015327/https://www.law.georgetown.edu/your-life-career/career-exploration-professional-development/for-jd-students/explore-legal-careers/practice-areas/international-trade-law/|url-status=live}}</ref> |
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The body of rules for transnational trade in the 21st century was derived from medieval commercial laws called the ''[[lex mercatoria]]'' and ''[[lex maritima]]''—respectively, "the law for merchants on land" and "the law for merchants on the sea."<ref>{{Cite web|url=https://www.rand.org/topics/international-trade-law.html|title=International Trade Law|last1=Monica|first1=1776 Main Street Santa|last2=California 90401-3208|website=www.rand.org|language=en|access-date=2019- |
The body of rules for transnational trade in the 21st century was derived from medieval commercial laws called the ''[[lex mercatoria]]'' and ''[[lex maritima]]''—respectively, "the law for merchants on land" and "the law for merchants on the sea."<ref>{{Cite web|url=https://www.rand.org/topics/international-trade-law.html|title=International Trade Law|last1=Monica|first1=1776 Main Street Santa|last2=California 90401-3208|website=www.rand.org|language=en|access-date=26 September 2019|archive-date=26 September 2019|archive-url=https://web.archive.org/web/20190926120803/https://www.rand.org/topics/international-trade-law.html|url-status=live}}</ref> Modern trade law (extending beyond bilateral treaties) began shortly after the [[Second World War]], with the negotiation of a multilateral treaty to deal with trade in goods: the [[General Agreement on Tariffs and Trade]] (GATT).<ref>{{Cite web|url=https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm|title=WTO {{!}} Understanding the WTO – principles of the trading system|website=www.wto.org|language=en|access-date=26 September 2019|archive-date=16 February 2018|archive-url=https://web.archive.org/web/20180216033125/https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm|url-status=live}}</ref> |
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International trade law is based on theories of [[economic liberalism]] developed in [[Europe]] and later the [[United States]] from the 18th century onwards.<ref>{{Cite web|url=https://www.americanexpress.com/us/foreign-exchange/articles/world-trade-organization-rules-for-international-trade/|title=Rules of World Trade Organization {{!}} International Trade {{!}} American Express|website=www.americanexpress.com|access-date=2019- |
International trade law is based on theories of [[economic liberalism]] developed in [[Europe]] and later the [[United States]] from the 18th century onwards.<ref>{{Cite web|url=https://www.americanexpress.com/us/foreign-exchange/articles/world-trade-organization-rules-for-international-trade/|title=Rules of World Trade Organization {{!}} International Trade {{!}} American Express|website=www.americanexpress.com|access-date=26 September 2019|archive-date=26 September 2019|archive-url=https://web.archive.org/web/20190926120802/https://www.americanexpress.com/us/foreign-exchange/articles/world-trade-organization-rules-for-international-trade/|url-status=dead}}</ref> |
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International Trade Law is an aggregate of legal rules of "international legislation" and new lex mercatoria, regulating relations in international trade. '''"International legislation"''' – international treaties and acts of international intergovernmental organizations regulating relations in international trade. |
International Trade Law is an aggregate of legal rules of "international legislation" and new lex mercatoria, regulating relations in international trade. '''"International legislation"''' – international treaties and acts of international intergovernmental organizations regulating relations in international trade. |
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'''lex mercatoria''' |
'''lex mercatoria''' – "the law for merchants on land". Alok Narayan defines "lex mercatoria" as "any law relating to businesses" which was criticised by Professor Julius Stone. |
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and |
and |
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'''lex maritime''' |
'''lex maritime''' – "the law for merchants on sea. Alok in his recent article criticised this definition to be "too narrow" and "merely-creative". Professor Dodd and Professor Malcolm Shaw of Leeds University supported this proposition.{{cn|date=December 2023}} |
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The '''Lex Mercatoria''' is the grouping of legal rules that guide and underlie international trade, which acts totally independently of the positive law of states, being considered normative.<ref>{{Cite web|url=https://www.jus.uio.no/lm/|title=Lex Mercatoria: Lex Mercatoria: International Commercial Law & E-Commerce Infrastructure Monitor ( |
The '''Lex Mercatoria''' is the grouping of legal rules that guide and underlie international trade, which acts totally independently of the positive law of states, being considered normative.<ref>{{Cite web|url=https://www.jus.uio.no/lm/|title=Lex Mercatoria: Lex Mercatoria: International Commercial Law & E-Commerce Infrastructure Monitor (1993–2009)|website=www.jus.uio.no|access-date=3 October 2019|archive-date=7 September 2019|archive-url=https://web.archive.org/web/20190907001010/https://www.jus.uio.no/lm/|url-status=dead}}</ref> Currently, the new Lex Mercatoria has been prepared.<ref>{{Cite web|url=https://www.trans-lex.org/the-lex-mercatoria-and-the-translex-principles_ID8|title=The Lex Mercatoria (Old and New) and the TransLex-Principles {{!}} Trans-Lex.org|website=www.trans-lex.org|access-date=3 October 2019|archive-date=4 November 2019|archive-url=https://web.archive.org/web/20191104170924/https://www.trans-lex.org/the-lex-mercatoria-and-the-translex-principles_ID8|url-status=live}}</ref> The former Lex Mercatoria was generated in light of the characteristic demands of the time in question, including the values, culture, and future provisions of the time, whereas, the new one is recognized as having the responsibility of common international trade law.<ref>{{Cite web|url=https://www.lawteacher.net/free-law-essays/commercial-law/the-theory-of-the-lex-mercatoria-commercial-law-essay.php|title=Theory of the Lex Mercatoria|website=www.lawteacher.net|language=en|access-date=3 October 2019|archive-date=3 October 2019|archive-url=https://web.archive.org/web/20191003071444/https://www.lawteacher.net/free-law-essays/commercial-law/the-theory-of-the-lex-mercatoria-commercial-law-essay.php|url-status=live}}</ref> |
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==World Trade Organization== |
==World Trade Organization== |
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In 1995, the [[World Trade Organization]], a formal international organization to regulate trade, was established. |
In 1995, the [[World Trade Organization]], a formal international organization to regulate trade, was established.{{cn|date=December 2023}} |
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The purposes and structure of the organization are governed by the ''Agreement Establishing The World Trade Organization'', also known as the "[[Marrakesh Agreement]]". It does not specify the actual rules that govern international trade in specific areas. These are found in separate treaties, annexed to the Marrakesh Agreement. |
The purposes and structure of the organization are governed by the ''Agreement Establishing The World Trade Organization'', also known as the "[[Marrakesh Agreement]]". It does not specify the actual rules that govern international trade in specific areas. These are found in separate treaties, annexed to the Marrakesh Agreement. |
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The General Agreement on Tariffs and Trade(GATT) has been the backbone of international trade law since 1948 after the charter for international trade had been agreed upon in [[Havana]]. It contains rules relating to "unfair" trading practices—[[Dumping (pricing policy)|dumping]] and [[subsidy|subsidies]]. Many things impacted GATT like the [[Uruguay Round]] and the [[North American Free Trade Agreement]].<ref name=Matsushita2004/> |
The General Agreement on Tariffs and Trade(GATT) has been the backbone of international trade law since 1948 after the charter for international trade had been agreed upon in [[Havana]]. It contains rules relating to "unfair" trading practices—[[Dumping (pricing policy)|dumping]] and [[subsidy|subsidies]]. Many things impacted GATT like the [[Uruguay Round]] and the [[North American Free Trade Agreement]].<ref name=Matsushita2004/> |
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In 1994 the World Trade Organization (WTO) was established to take the place of the GATT. This is because the GATT was meant to be a temporary fix to trade issues, and the founders hoped for something more concrete. It took many years for this to come about, however, because of the lack of money. The British Economy was in crisis and there was not much backing from Congress to pass the new agreement.<ref>{{Cite web|url=https://api.parliament.uk/historic-hansard/commons/1994/jun/14/gatt|title=GATT (Hansard, 14 June 1994)|website=api.parliament.uk|access-date=2019- |
In 1994 the World Trade Organization (WTO) was established to take the place of the GATT. This is because the GATT was meant to be a temporary fix to trade issues, and the founders hoped for something more concrete. It took many years for this to come about, however, because of the lack of money. The British Economy was in crisis and there was not much backing from Congress to pass the new agreement.<ref>{{Cite web|url=https://api.parliament.uk/historic-hansard/commons/1994/jun/14/gatt|title=GATT (Hansard, 14 June 1994)|website=api.parliament.uk|access-date=3 October 2019|archive-date=3 October 2019|archive-url=https://web.archive.org/web/20191003072033/https://api.parliament.uk/historic-hansard/commons/1994/jun/14/gatt|url-status=live}}</ref> |
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The idea of these agreements (WTO and GATT) was to create an equal field for all countries in trade.<ref>{{cite journal |id={{ProQuest|220713673}} |last1=Kapstein |first1=Ethan B |title=Distributing the gains: Justice and international trade |journal=Journal of International Affairs |location=New York |volume=52 |issue=2 |date=Spring 1999 |pages=533–555 }}</ref> This way all countries got something of equal value out of the trade. This was a difficult thing to do since every country has a different economy size. This led to the [[Trade Expansion Act|Trade Expansion act]] of 1962. |
The idea of these agreements (WTO and GATT) was to create an equal field for all countries in trade.<ref>{{cite journal |id={{ProQuest|220713673}} |last1=Kapstein |first1=Ethan B |title=Distributing the gains: Justice and international trade |journal=Journal of International Affairs |location=New York |volume=52 |issue=2 |date=Spring 1999 |pages=533–555 }}</ref> This way all countries got something of equal value out of the trade. This was a difficult thing to do since every country has a different economy size. This led to the [[Trade Expansion Act|Trade Expansion act]] of 1962.{{cn|date=December 2023}} |
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== Principles of International Trade Laws == |
== Principles of International Trade Laws == |
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* [[National treatment|National Treatment]] Principle: Imported and locally-produced goods should be treated equally—at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents. These principles apply to trade in goods, trade in services as well as trade related aspects of intellectual property rights. |
* [[National treatment|National Treatment]] Principle: Imported and locally-produced goods should be treated equally—at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents. These principles apply to trade in goods, trade in services as well as trade related aspects of intellectual property rights.{{cn|date=December 2023}} |
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* [[Most favoured nation|Most Favored Nation]] (MFN) Principle: The MFN principles ensures that every time a WTO Member lowers a trade barrier or opens up a market, it has to do so for the like goods or services from all WTO Members, without regard of the Members’ economic size or level of development. The MFN principle requires to accord to all WTO Members any advantage given to any other country. A WTO Member could give an advantage to other WTO Members, without having to accord advantage to non- Members but only WTO Members benefit from the most favorable treatment. |
* [[Most favoured nation|Most Favored Nation]] (MFN) Principle: The MFN principles ensures that every time a WTO Member lowers a trade barrier or opens up a market, it has to do so for the like goods or services from all WTO Members, without regard of the Members’ economic size or level of development. The MFN principle requires to accord to all WTO Members any advantage given to any other country. A WTO Member could give an advantage to other WTO Members, without having to accord advantage to non- Members but only WTO Members benefit from the most favorable treatment.{{cn|date=December 2023}} |
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==Trade and intellectual property== |
==Trade and intellectual property== |
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The World Trade Organization Trade-Related Aspects of Intellectual Property Rights ([[TRIPS]]) agreement required signatory nations to raise [[intellectual property rights]] (also known as intellectual monopoly privileges). This arguably has had a negative impact on access to essential medicines in some nations such as less developed countries, as the local economy is not as capable of producing more technical products such as pharmaceuticals. |
The World Trade Organization Trade-Related Aspects of Intellectual Property Rights ([[TRIPS]]) agreement required signatory nations to raise [[intellectual property rights]] (also known as intellectual monopoly privileges). This arguably has had a negative impact on access to essential medicines in some nations such as less developed countries, as the local economy is not as capable of producing more technical products such as pharmaceuticals.{{cn|date=December 2023}} |
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==Cross-border transactions== |
==Cross-border transactions== |
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Cross-border operations are subject to taxation by more than one country. Commercial activity that occurs among several jurisdictions or countries is called a cross-border transaction. Those involved in any international business development or international trade should be knowledgeable in [[International taxation|tax law]], as every country enforces different laws on foreign businesses. International tax planning ensures that cross-border businesses stay tax compliant and avoid or lessen [[double taxation]]. |
Cross-border operations are subject to taxation by more than one country. Commercial activity that occurs among several jurisdictions or countries is called a cross-border transaction. Those involved in any international business development or international trade should be knowledgeable in [[International taxation|tax law]], as every country enforces different laws on foreign businesses. International tax planning ensures that cross-border businesses stay tax compliant and avoid or lessen [[double taxation]].{{cn|date=December 2023}} |
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==Dispute settlement== |
==Dispute settlement== |
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Most prominent in the area of dispute settlement in international trade law is the WTO dispute settlement system. The WTO dispute settlement body is operational since 1995 and has been very active since then with 369 cases in the time between 1 January 1995 and 1 December 2007.<ref>{{cite book |last=van den Bossche |first=Peter |title=The Law and Policy of the World Trade Organization |
Most prominent in the area of dispute settlement in international trade law is the WTO dispute settlement system. The WTO dispute settlement body is operational since 1995 and has been very active since then with 369 cases in the time between 1 January 1995 and 1 December 2007.<ref>{{cite book |last=van den Bossche |first=Peter |title=The Law and Policy of the World Trade Organization – Text, Cases and Materials |year=2008 |publisher=Cambridge University Press |location=Maastricht University |isbn=978-0-521-72759-4 |page=[https://archive.org/details/lawpolicyofworld0000boss/page/169 169] |url=https://archive.org/details/lawpolicyofworld0000boss/page/169 }}</ref> Nearly a quarter of disputes reached an amicable solution, in other cases the parties to the dispute resorted to adjudication. The WTO dispute settlement body has exclusive and compulsory jurisdiction over disputes on WTO law (Article 23.1 Dispute Settlement Understanding<ref name=Matsushita2004>{{cite journal |id={{ProQuest|217554638}} |last1=Matsushita |first1=Mitsuo |title=Governance of International Trade Under World Trade Organization Agreements-Relationships Between World Trade Organization Agreements and Other Trade Agreements |journal=Journal of World Trade |volume=38 |issue=2 |date=April 2004 |pages=185–210 |doi=10.54648/TRAD2004008 |s2cid=152943023 }}</ref>). |
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==See also== |
==See also== |
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* [[ |
* [[Case law]] |
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* [[International trade]] |
* [[International trade]] |
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* [[World Trade Organization]] |
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==Notes== |
==Notes== |
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==References== |
==References== |
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*{{cite book |last=van den Bossche |first=Peter |title=The Law and Policy of the World Trade Organization |
*{{cite book |last=van den Bossche |first=Peter |title=The Law and Policy of the World Trade Organization – Text, Cases and Materials |year=2008 |publisher=Cambridge University Press |location=Maastricht University |isbn=978-0-521-72759-4 |pages=[https://archive.org/details/lawpolicyofworld0000boss/page/917 917] |url=https://archive.org/details/lawpolicyofworld0000boss/page/917 }} |
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*{{cite book |last1=Dixon |first1=Martin |title=Textbook on International law |date=2013 |publisher=Oxford Press |isbn=978-0-19-957445-2 |pages=286–319 |edition=7th}} |
*{{cite book |last1=Dixon |first1=Martin |title=Textbook on International law |date=2013 |publisher=Oxford Press |isbn=978-0-19-957445-2 |pages=286–319 |edition=7th}} |
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*{{cite book |last1=Dixon |first1=Martin |last2=McCorquodale |first2=Robert |last3=Williams |first3=Sarah |title=Cases and Materials on International Law |date=2011 |publisher=Oxford Press |isbn=978-0-19-956271-8 |pages=479–521 |edition=5th}} |
*{{cite book |last1=Dixon |first1=Martin |last2=McCorquodale |first2=Robert |last3=Williams |first3=Sarah |title=Cases and Materials on International Law |date=2011 |publisher=Oxford Press |isbn=978-0-19-956271-8 |pages=479–521 |edition=5th}} |
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*{{cite document |last1=Bird |first1=Frederick |last2=Vance |first2=Thomas |last3=Woolstencroft |first3=Peter |title=Fairness in International Trade and Investment: North American Perspectives |publisher=Journal of Business Ethics |id={{ProQuest|198090588}} }} |
*{{cite document |last1=Bird |first1=Frederick |last2=Vance |first2=Thomas |last3=Woolstencroft |first3=Peter |title=Fairness in International Trade and Investment: North American Perspectives |publisher=Journal of Business Ethics |id={{ProQuest|198090588}} }} |
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*{{Cite web |url=https://insurancearcade.com/cross-border-transactions-and-double-taxation/ |title=Cross Border Transactions and Double Taxation Agreement |last=Arcade |first=Insurance |date=22 February 2019 |website=Insurance Arcade |language=en |access-date=25 February 2019}} |
*{{Cite web |url=https://insurancearcade.com/cross-border-transactions-and-double-taxation/ |title=Cross Border Transactions and Double Taxation Agreement |last=Arcade |first=Insurance |date=22 February 2019 |website=Insurance Arcade |language=en |access-date=25 February 2019}} |
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*{{cite journal| title=Law Without the State: The Theory of High Engagement and the Emergence of Spontaneous Legal Order within Commercial Systems| author=Druzin, B.H.| url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1561612| journal=[[Georgetown Journal of International Law]]| pages=559-620| volume=41| date=Spring 2010| access-date=14 December 2023| url-status=live| archive-url=https://web.archive.org/web/20140503064309/http://works.bepress.com/cgi/viewcontent.cgi?article=1002&context=bryan_druzin| archive-date=3 May 2014}} |
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*{{cite web| title=Does Sales-Only Apportionment Violate International Trade Rules?| author1=McLure, C.E.| author2=Hellerstein, W.| url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=328882| publisher=Elsevier Inc.| |
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date=6 September 2002| access-date=14 December 2023}} |
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==External links== |
==External links== |
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*[http://www.ibanet.org/ International Bar Association] |
*[http://www.ibanet.org/ International Bar Association] |
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*[http://www.intracen.org/ International Trade Center |
*[http://www.intracen.org/ International Trade Center – a UN organization] |
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*[http://www.tralac.org/ Trade Law Centre for Southern Africa] |
*[http://www.tralac.org/ Trade Law Centre for Southern Africa] |
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*[http://www.wti.org/ World Trade Institute |
*[http://www.wti.org/ World Trade Institute – at the University of Berne] |
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*[http://www.wto.int/ World Trade Organization - WTO] {{Webarchive|url=https://web.archive.org/web/20210701191545/https://www.wto.int/ |date=2021-07-01 }} |
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*[https://papers.ssrn.com/sol3/papers.cfm?abstract_id=328882 Does Sales-Only Apportionment Violate International Trade Rules?] Report suggesting that sales-only apportionment may violate international trade rules that prohibit export sales. |
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*[https://web.archive.org/web/20140503064309/http://works.bepress.com/cgi/viewcontent.cgi?article=1002&context=bryan_druzin B.H. Druzin (2010, Spring). "Law without the State: the Spontaneous Emergence of Commercial Legal Order,"] ''[[Georgetown Journal of International Law]]'' '''41''': 559-620. |
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{{DEFAULTSORT:International Trade Law}} |
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