Analyzing Strategic Trade, Environmental Rules & Int. Sales Contracts

This report provides a comprehensive overview of international trade law, beginning with an examination of strategic trade, environmental competition, and preferential trade arrangements. It discusses the role of international competition policy and various organizations like the WTO, CITES, ITC, and UNCTAD in environmental protection. The report further explains classical theories of trade, including mercantilism, absolute advantage, comparative advantage, and the theory of distortions. It then delves into types and rationales for preferential trade agreements and the economic bases of GATT rules and principles. The second task evaluates the principles, practices, rules, and regulations of international sales contracts, assessing the CISG and key contract clauses. Finally, it addresses the rights, obligations, and validity of international sales contracts, highlighting the challenges of applying international rules due to domestic law.

INTERNATIONAL
TRADE LAW

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
TASK 2............................................................................................................................................7
CONCLUSION ............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
International Trade means to regulate the business across the border's. There are various
rules and regulations which have to obey by the business companies with the help of the
lawyer's, who will help the companies to comply with the domestic law with the international
trade, and also helps the companies to apply the treaty- based international law governing trade.
In this report, the operations of international business towards the environmental regulations will
be discuss along with the theories(Amro,2019).
TASK
Critically explain the concept of strategic trade, environmental competition and
preferential trade arrangements in the international trade.
Strategic Trade- it is defined as the policy which builds the strategic relationship
between the firms in the domestic as well as in the international oligopoly. The main idea behind
the strategic policy is to raise the domestic welfare by transferring the profits from the
international markets to the domestic companies.
WTO main motive to allow the countries to do trade is to protect and preserve the
environment, while there is no agreement under the WTO dealing with the environment, there
are rules which the member can adopt to protect the environment(Van Noort2019).
Environmental competition- the growth in the world economy has put the direct impact
on the environment by increasing the level of pollution and by degrading the natural resources.
This will, become the challenge for the companies to control the environmental order while
doing the trade.
Preferential trade arrangements- it is an agreement between the countries which
diminish the tariffs and the barriers for the products under which the contract has been made
between the countries(Awdry2021).

Explain the role of international competition policy for environmental regulations and
strategic environmental protection for any organisation doing trade globally.
The main aim of the competition policy is to promote the competition between the
countries to do business and to ensure that, the agreements is made as such which helps the
economic progress as well as environmental protection. There are many uncertainties between
the international competition and the environmental standards, for some countries it is difficult to
maintain the standard of their business with the environmental protection(Borozna2022).
Role of WTO- it is an organisation which deals with the regulations of international trade and
commercial market worldwide, Which influence the objectives of environmental protection. So,
as an initial process, in Geneva there was a meeting held in 2022, in which the member's of
WTO had a discussion about the environment and trade priorities that would give the advance
progress on the sustainable development growth. Issues like pollution and fossil fuel subsidies
were discussed in the committee on trade and environment(Bugden and Lamont-Black, 2018).
Convention on international trade in endangered species of wild fauna and fora- CITES is an
international agreement between the Governments of different countries, it's main aim to protect
the survival of the wild animals and plants which were got in danger while performing the
international trade.
International Trade Centre (ITC)- it is the joint agency of the World Trade Organisation and
the United Nations, their work is fully dedicated to protect the small and medium enterprises to
overcome with the barriers in which they face the difficulties to protect the environment related
standards.
United Nations conference on Trade and development- it is an intergovernmental body which
work on to utilize the international trade with the best way, while promoting the importance of
the environmental protection(Samdersh,2020).

Explain the concept of classical theory of distortions to measure trade barriers.
Theory of Mercantilism-
This theory encourage the export and discourage the import. According to this theory, the
government plays an important role in the economy to uplift the export and depress the import
with the help of taxes and subsidies
Theory of absolute advantage- the location of the country in the the globe plays an significant
role, only the location of the country will give an idea about the natural resources, which are
present at that place in a huge amount and this will give the greater opportunity to the country
over the other countries. For example, the countries in the Middle East produce oil more quickly
and efficiently as compare to the nations in North America, this will empowering the country
with the absolute advantage.
Theory of comparative advantage- the trade can be beneficial for the countries if one country
has absolute advantage in all the products and the other country has no absolute advantage in any
products.
Classical theory of Distortion- this theory is about the barriers which stops the trade in the
market to work freely in an open competition, and mainly the distortion occur when, the
governing bodies try to regulate the market for example performing activities like, setting the
price floors and the ceiling floors, tax etc.
Critically describe types and rationales for preferential agreements
Partial free trade agreement- it involves two or more countries which offer the low tariff or
zero tariff on goods but, it is not on all goods.
Free trade agreements- in this agreement between the countries, they offer each other zero tariff,
and the countries who followed the FTA keeps its own policies against the non- member
countries.
Custom Union- it is a part of the free trade agreement, in the addition of the FTA, members were
agree to have the same trade policy against the non members.
Common Market- it is such type of the custom union in which the labour's and their capital were
allowed to move freely among the members of the countries.

Economic Union- it is a common market for all, in which there is only one central fiscal and
monitory policy, it means the central government decide the federal tax and also the expenditures
and there is only one central bank to control the financial markets.
Critically explain the economic bases of the rules and principles of the GATT.
The agreements on the trade and the tariff between the countries which, doing the trade
internationally, is known as GATT. It was created after the World War II to stabilise the trade
and the economy of the world, with the help of some basic principles of it.
The basic principles of the GATT are;
Most favoured nation treatment- it is the basic principle of GATT, which states that the every
contacting party provides the same conditions of trade to all other contracting parties,
unconditionally the signatory country allot any trade or financial advantage to the another
country after granting from the signatory state.
Principle of national agreement- it supports the non-discrimination between the member of the
states and also assure the compliance with the non- discrimination rule in foreign trade. It
constrain the unequal treatment of foreign imported and locally produced goods.
Transparency- the transparency in the trade reduce the process of negotiations. The GATT, put
limitation on the use of quotas except in the sector of agriculture and the import regime which
are based on the tariff only.
TASK 2
Evaluate the underlying principles, practices, rules and regulation of international
sales contracts.
Assess constitutes for the contract for sales of goods and products.
The contracts of buying and selling of goods and products at international level is the
legal relation created between different nations and the principles which governs this contracts
are largely framed under the international covenants and treaties. This contracts are the
agreements created between nations which includes the rights ,duties,obligations and remedies
for breach in contractual obligation. The parties in a contract are termed as : exporter or importer.
There are other various sources which supports the principles of international commercial
contracts such as : Uniform Sales of Goods, the Principles of European Contract Law and
UNIDROIT Principles of International Commercial Contract (2010).

The essential principles in the International Sale Contract is the details of the quality of product,
its dispatch time,conditions of payment,price, law governing body, the tribunals and forums for
trade disputes, and the medium of dispute resolution. This are the key principles which needs to
be addressed and confirmed at the time of entering into the international contract(Graziano2019).
The United Nations Convention On Contracts for International Sale of Goods(CISG), sets
the standards in respect of international sale of goods and products. As many countries have
permitted their domestic companies to constitute a contract and allow freedom to enter into
international trade. Provided that such companies must have good International Sales of Goods
Contract template. This contract templates recognises the characteristics about the nature of
trade that whether it is a sale or the purchase of goods in international markets.
The convention on contracts for the international Sale of Goods is consists of 101 Articles.
The provisions relating to formation of contracts are mentioned under Article 14-24 of the
International Sale of Goods. The convention provides for business practices in Article 8.3.
following are some of the important clauses which play important role in International Sales
Contract such as :
 Product: the contract relating to goods and product must be especially specified that they
can be identified. If there is any product which complex in nature, in such cases detailed
description is required to be annexed with the contract.
 Quantity: the quantity must be mentioned in in actual terms such as kilos, litres, units
etc. this should be ascertained in the terms of contract at the time of entering into the
contract.
 Delivery: the contract must ensure the time and the place of delivery and the point of
determination of the contract where seller;s responsibility in the contract ends.
 Price: The price of the product in total including all the degree its quantity and delivery ,
shall be made final in the contract in fixed terms. If the trade is made on any currency
then it shall be specified in the contract expressly.
 Payment terms: the terms of Payment and in what currency must be made certain in a
contract.
 Insurance: parties can make terms relating to insurance cover to the product and
determine that who will provide insurance cover.

 Government Requirements: before entering into the contract both the concerned party
must make clear about the their domestic laws and regulation which covers the
administration of export or import of any goods or products.
 Dispute Resolution: if any dispute arises in terms or conditions of the contract, the best
option to solve the dispute is the arbitration that enables the parties to put their concerns.
The ICC International Court Of Arbitration has the worldwide reach to address the
disputes of international trade.
 Applicable Law: here the sellers and buyers are at liberty to choose the piece of law that
applies to their international sales of contract. It can be done by specifying in the
contract.
Assess the rights and obligations imposed under international sales
The right and obligations between the parties under an International Contract totally depends on
the grounds that what law covers their agreement. The followings are the rights and obligation
imposed under international law.
 The delivery of goods must be made as per the contract.
 If seller has send defective good , the buyer can reject the goods.
 The delivery of the ordered goods must be delver at ones, there is no option of sending
goods in instalments.
 If the goods are send via ship route, the buyer has the right to be informed that his order
is insured.
 In case of breach in contract by side of either party , the party who has obtained loss will
be compensated.
 It is the duty of the buyer to accept the goods and pay the consideration as per terms.
All parties concerned with the international contracts must be update about the rule which
applies to the contracts.

Evaluate the validity of rights and obligation of international sales contracts
The rules which governs the international sales contract is difficult to apply because of domestic
law. This resulted in the validity exception which is provided under Article 4 sentence 2(a) of the
United Nations Convention for contracts for the International Sale of Goods. Which was adopted
with the view to compromise and this provisions provide assistance in deciding which validity
matters are covered by the convention(Kovalenko and Akhmetshin 2018). The truth is the
validity provisions are irrelevant.
Evaluate the implications of making international contract online
with the rise of e-commerce , there is a sudden rise rise in the use of e-contracts. The
implications of e-contracts face a lot of challenges such as data protection because terms and
conditions of the contracts and all the important confidential facts in online is the major worry
for parties. The other problem which the parties can face is related to intellectual property rights.
The quality of products or the delivery of faulty goods are the some major negative implications
that may arise at the time of contracting online(Shethand and Subramanian2019)..
CONCLUSION
As per the above study it can be concluded that,since the emergence of e-commerce
there is frequent rise in the international contract between two or more different. All this nations
together has constituted many covenants and treaties to established and maintain the trade
cooperation between the signatory members of the treaties. However , there lies many
differences and complexities in the operation of the international trade. Because of the domestic
laws which many times interrupts the international transaction. Therefore, many cross-border
transaction faces many legal implications and it affects the contractual obligations. If considered
and think from both the angle international contracts on sale has its own advantage and
disadvantage. Commercial contract within the framework of international law face little
consequence but on the other hand if there is any contract which is not inconsistent with the
international law has to accountable for its action.

REFERENCES
Books and Journals
Amro, I.A.S., 2019. Online arbitration in theory and in practice: a comparative study of cross-
border commercial transactions in common law and civil law countries. Cambridge
Scholars Publishing.
Awdry, R., 2021. Assignment outsourcing: moving beyond contract cheating. Assessment &
Evaluation in Higher Education, 46(2), pp.220-235.
Borozna, A., 2022. The Role of Strategic Culture and Threat Perception in Foreign Policy
Formation. In The Sources of Russian Foreign Policy Assertiveness (pp. 7-21). Palgrave
Macmillan, Cham.
Bugden, P. and Lamont-Black, S., 2018. Goods in transit. Sweet & Maxwell.
Graziano, T.K., 2019. Comparative contract law: cases, materials and exercises. Edward Elgar
Publishing.
Kim, H. and Zhang, H., 2021. Determination of Strategic Spreads in East Asia. Global Economic
Review, 50(2), pp.73-92.
Kovalenko, K. and Akhmetshin, E., 2018. Essential terms of the contract of carriage of goods.
Samdershi, A., Gupta, V. and Dharwal, M., 2020, December. The Strategic Role of Special
Economic Zones in Economic Development: A Special Case of Shanghai Free Trade
Zone. In e-journal-First Pan IIT International Management Conference–2018.
Sheth, A. and Subramanian, H., 2019. Blockchain and contract theory: modeling smart contracts
using insurance markets. Managerial Finance.
Van Noort, C., 2019. The Construction of Power in the Strategic Narratives of the
BRICS. Global Society, 33(4), pp.462-478.