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Uzone.id – Imagine international trade like buying and selling across borders. Instead of just going to the local store, you’re shopping in a different country. To make sure everything goes smoothly and fairly, there are special rules in place. These rules are called international trade law.
According to Clive M. Schmitthoff, a professor from the City of London College, international trade law is a set of rules that regulate commercial relations which are civil law in nature. These rules help businesses and governments understand their rights and responsibilities when trading with each other. They cover things like contracts, customs, and tariffs.
Think of international trade law as a set of guidelines. They help businesses and governments understand their rights and responsibilities when trading with each other. These rules cover things like contracts, customs, and tariffs.
Just like in your local town, businesses aim to make a profit from trading. The same is true for international trade. Countries want to benefit from selling their goods and services to other countries.
The players in international trade can be anyone. They might be individuals, companies, or even governments. Some common examples include export companies, import companies, and government agencies.
Background to the Occurrence of International Trade
Each country has differences in terms of natural resources, labor, expertise, technology, and capital. These differences also give rise to differences in the goods produced, the costs required, as well as the quality and quantity.
As a result, some countries are superior in producing certain results. The advantages of a country are divided into two, namely absolute advantage, which is an advantage if a country excels in producing a type of good due to natural factors.
Second, comparative advantage. That is if a country produces a type of good better due to a better combination of natural production factors, labor, management, etc.
The reason a country is involved in international trade is because each country is different from another. Countries, like individuals, can benefit from differences by agreeing to produce something that can be done well.
On the other hand, a country engages in trade to achieve economies of scale in production. If each country produces only certain types of products, then each country can produce products on a larger scale and more efficiently than if it tried to produce all the products needed.
Objectives of International Trade Law
The objectives of international trade law are as stated in the Preamble to the GATT Charter (General Agreement on Tariffs and Trade, 1947), namely:
1. to achieve stable international trade and avoid national trade policies and practices that are detrimental to other countries;
2. to increase the volume of world trade by creating attractive and profitable trade for the economic development of all countries;
3. improve human living standards;
4. increase the workforce.
5. to develop a multilateral trading system, not one-sided by a particular country, which will implement open and fair trade policies that benefit all countries
6. increase the utilization of world wealth resources and increase products and goods buying and selling transactions.
Sources of International Trade Law
1. Sources of private law: Vienna Convention, UNIDROIT Commercial Contract, UCP 600, Incoterms 2010, the Hague Rules, the Hague-Visby Rules, the Hamburg Rules, the Rotterdam Rules, etc.
2. Sources of public law: WTO, AFTA, ASEAN Economic Community, etc.
HDI’s Conflict of Laws involves at least 2 different legal systems. The parties in HDI are subject to their respective national laws, and if the place of fulfillment of achievements is not in the domicile of one of the parties but in another country (3rd country), then the legal system of that 3rd country must also be taken into account. The existence of several legal systems will give rise to disputes, especially if there is a dispute between the parties to an HDI. Therefore, the parties must determine the choice of law and the choice of forum.
1. Choice of Law (Choice of Law)
In making an international trade contract, the parties must choose which law will be used as the basis for the contract. The parties must agree to choose the law of the exporting country or the law of the importing country that will apply to their contract.
The parties can also choose international contract law as the basis of their contract law, such as the Vienna Convention contract law, UNIDROIT, etc. If in the contract the parties do not choose law, then if a dispute arises the judge will decide which law is closest to implementing the contract.
2. Choice of Forum (Choice of Forum)
In addition to determining the choice of law, the parties to the contract must also choose in which court a dispute will be resolved. If the parties wish for dispute resolution not to be carried out in a judicial institution but through arbitration or alternative dispute resolution, then they must choose in which arbitration forum or alternative dispute resolution the dispute will be resolved.