What is the role of the World Trade Organisation? - Law - International Law

The World Trade Organisation (WTO) is an international body dealing with international trade policy and the rules of trade between nations at a global or near-global (multilateral) level. Its primary aim is the promotion of free trade, through encouraging countries to remove barriers to trade such as tariffs.

The WTO was set up in 1995, replacing the previous organisation known as the General Agreement on Tariffs and Trade (GATT). GATT was established in 1948 by the agreement of the same name. The WTO has a much broader scope than GATT, which was confined to the regulation of trade in goods, whereas WTO covers all types of international trade, including services, inventions, designs, telecommunications, and banking, as well as related issues such as intellectual property.

The WTO (and previously GATT) has produced a great body of international trade law or trade rules. These international trade rules have evolved through several rounds of negotiations. The creation of the WTO came out of the Uruguay Round of negotiations (1986 to 1994).

At present, there are 151 member states. This means that the WTO agreements are negotiated and signed by most of the worlds trading countries. The WTO agreements therefore form the legal ground-rules for international trade and commerce globally. The agreements bind governments to maintain their trade policies as specified by the WTO. This in turn helps those private individuals and companies involved in international trade, including manufacturers, importers and exporters. An international trade lawyer can explain how the WTO agreements affect your business.

There are three major WTO agreements of interest to most businesses. These are:

These not only set out international trade rules, but also cover procedures for settling disputes. Most of these principles apply to disputes between governing bodies. Disputes between private individuals are more readily addressed by the UNCITRAL Conciliation and Arbitration Rules. An international trade solicitor can give you advice as to whether this might be suitable for your commercial dispute.

THE RULES AND PRINCIPLES OF GATT - Business

In order to arrive at an agreement that all member countries could abide by, the ITO contained a number of exceptions to the general principles.

Because of these compromises, a free-trade principle was often followed by a trade-restriction loophole. Such compromises by the United States and the international prestige of the United States led to general acceptance of the ITO abroad; however, concern for the loopholes raised sufficient apprehensions at home that President Truman decided in 1950 not to seek ratification by the U. S. Congress.

The principles and rules of the GATT are as follows:Most-Favored-Nation TreatmentThe primary objective of the GATT was to create fair and equitable trading relationships among the nations of the world.

Given this objective it is not surprising that the first article was 76 devoted to the principle of non-discrimination. Following historical custom, non-discrimination was defined in terms of "general most-favored-nation treatment".

To belong to GATT, countries must adhere to the most-favored-nation (MFN) clause. This clause requires that if a country, such as the United States, grants a tariff reduction to one country, for example, a cut from 20 percent to 10 percent on wool sweaters from Australia, it must grant the same concession to all other countries.

The MFN clause also applies to quotas and licenses. Although the clause initially was intended to be unconditional, countries have always made exceptions. The most important exceptions are as follows:

* LDC's manufactured products have been given preferential treatment over those from industrial countries.

* Concessions granted to members within a trading alliance, such as the EU or the North

American Free Trade Association (NAFTA), have not been extended to countries outside the alliance.

* Countries that arbitrarily discriminate against products from a given country are not necessarily given MFN treatment by the country whose products are discriminated against.

* No signatory countries are not always treated in the same way as those that grant concessions.

* Countries sometimes stipulate exceptions based on their existing laws at the time of signing a GATT agreement, such as Switzerland's exclusion of agricultural trade.

* Exceptions are made in times of war or international tension.

Quantitative Restrictions Right from the beginning, the United States sought the abolishment of quotas that limit imports to a predetermined quantity.

Quotas are an effective trade-restricting mechanism and are easily understood by all traders. However, it is literally impossible to administer quotas in any manner other than a discriminatory manner. Thus they call for the abolishment of quotas.

In the main, quotas have been phased out, with three major exceptions. First, Article XII is to apply such quotas on a most-favored-nation basis to the maximum extent possible.

The second major exception deals with trade in agricultural products. The developed countries typically have farm-income support programs that operate by maintaining farm prices above world prices.

In order to accomplish this, the domestic market must be separated from world markets. The United States separates these markets by the use of import quotas. The European Community uses a system of variable levies.

A variable levy is simply a tax on imports (like a tariff) that is adjusted daily to assure that import prices (inclusive of the variable levy) are maintained above a minimal target price for local farm products.

The third exception is governed by the GATT Long Term Arrangement Regarding International Trade in Cotton Textiles of 1962. Under this arrangement, countries whose markets for textiles and apparel are disrupted by imports can negotiate "orderly marketing agreements "with selected exporting countries, whereby the exporting country limits its exports to the importing country.

More NAFTA, More Bad Deals - Business - Ethics

July 11, 2011. Mexico City. President Obama and Mexican President Felipe Calderon signed a deal that will officially, temporarily at least, fulfill a long argued portion of NAFTA. The North American Free Trade Agreement was signed into law in 1994. At the time, both partys leadership championed the trade deal, while a unique assortment of social activists Jesse Jackson, Pat Buchanan, Ross Perot, the AFL CIO and others claimed it would destroy millions of American jobs. Today, experts still argue over the benefits, or harm, from NAFTA. Depending on which side you believe, this new agreement is either good news or bad news.

The agreement President Obama signed with Mexican President Calderon will essentially end a mini trade war. As early as 1995, the Clinton administration closed the gates to Mexican truckers citing safety concerns. In response, Mexico began illegally over-taxing many American products, thus making them too expensive to compete in Mexico alongside Mexican products.

This new agreement will not only end the decade-long dispute, but it will reap immediate profits to those who stand to benefit. In Mexico, its a win/win situation. The government wont lose any additional tax revenue by eliminating the tariffs on American goods, as they never collected any to begin with. The whole exercise was to punish American companies. US products are still too expensive to compete there. Except in cases where American companies have a uniquely addictive product or a virtual monopoly, like Pepsico or Smith and Wesson, American companies wont see any new sales in Mexico. On the plus side, Mexico will have fulfilled a promise to tens of thousands of Mexican truckers who see Americas roadways as new opportunities and more income.

Here in America, the situation is more of a lose/win/lose scenario. As early as next month, thousands of American truckers will lose their jobs while the American companies they work for will choose to hire their Mexican counterparts at a much lower pay scale. And that brings us to the only winners here in the US. American companies of all sizes, except trucking companies, hope to see additional profits two ways.

First, their shipping costs will be lower because they wont have to hire a US trucking company to pick up the Mexican goods they sell here in the US at the border and bring them the rest of the way to an inland city like Boise or Buffalo. This new agreement allows Mexican truckers to make their deliveries regardless of where they are in the continental US. Until now, Mexican truckers werent allowed to operate on Americas open roads due to safety concerns over our differing language and traffic laws.

The second benefit these American companies hope to see is additional sales in Mexico. Wall Street analysts calculate that these products should cost roughly 20 percent less than they did until now. Critics argue that it isnt enough to make American products competitive against Mexican products that are half or one-third their price.

The only losers in the deal signed by President Obama and supported by Republicans appear to be the users of Americas roadways, especially our nations truckers the Teamsters. Thousands of Teamsters and independent truckers alike will be out of work. All the one and two day trips from the Mexican border throughout America, transporting Mexican goods to their US destinations, will now be made by Mexican truckers who for the first time, wont have to drop off their cargo at the border and head back.

More importantly, and often overlooked in the world of business and high finance, are the effects this agreement will have on everyday American motorists. Heres one example.

Here in Illinois, our last governor was sentenced to prison for actions he committed while serving as Secretary of State. No, not Democrat Blago, our Republican governor before him that also went to prison, George Ryan. Before Blagojevich got caught selling our US Senate seat, then Secretary of State George Ryan was caught selling Commercial Drivers Licenses to foreigners who couldnt read or speak English and had no knowledge of the rules of the road.

One of Ryans customers went on to kill the entire family of a minister and his wife. Six children in all, burned to death in a fiery interstate collision caused by a foreign truck driver who wasnt prepared or equipped to handle the task. Many fear that horrible instance will now be repeated a thousand times over.

Perhaps that tragic result of Illinois corruption is the reason fierce opposition has arisen to President Obamas Mexican trade deal, and the reason its emanating from his home state of Illinois.

Immediately after the President signed the agreement, Rep. Dan Lipinski (D-IL) co-sponsored a new law that would cut-off the funds the Department of Transportation needs to implement the deal. Following right behind Congressman Lipinski were Americas Teamsters.

Opening the border to dangerous trucks at a time of high unemployment and rampant drug violence is a shameful abandonment of the Department of Transportations duty to protect American citizens from harm and to spend American tax dollars responsibly said Teamster President James Hoffa.

Countering any safety concerns, the White House points out specific protections within the agreement. In order to drive inside the US, Mexican trucking companies will be required to perform background checks on their drivers. They will also have to install electronic surveillance equipment to insure drivers arent driving too many hours in violation of DOT rules. Most importantly, Mexican drivers will have to pass an oral exam on US traffic laws, in English. Lastly, drivers would have to submit to an inspection of their trucks at the border and purchase US auto insurance.

Critics argue that all those things must be done and verified on the Mexican side of the border. With a government that appears to be losing a civil war to Mexican drug cartels, Americans are skeptical of any of those requirements being enforced. Critics also condemn the fact that the money to pay for all the monitoring and inspections done on the Mexican side of the border is to be paid for by the US taxpayers through Federal gasoline taxes.

Rep. Lipinski finds that fact is most persuasive argument among his constituents. It takes money from the highway trust fund and purchases these electronic on-board recorders for the Mexican trucks. We need the money for our own roads. When I tell people that their tax money will be paying for equipment on Mexican trucks, they cant believe that this would be happening.

It appears America has once again given away tens of thousands of jobs in one single trade deal. And again, it looks like the US taxpayers are paying another country to take them. While critics of NAFTA and this new trucking deal are already rallying their troops to fight it, things dont appear to be too happy on the Mexican side either.

The head of the Mexican Trucking Association wasnt optimistic. Citing a history of Americas Democratic leaders siding with organized labor, as well as the practices of organized labor itself, Jose Refugio Munoz, who represents 8,000 Mexican trucking companies stated his skepticism. Munoz was quoted by Dow Jones News Service as saying, We see the agreement as a good-faith effort, as a type of experiment. Its a start, on paper, but we have no illusions that this is a definitive program. We view it with skepticism.

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Mexican and Canadian NAFTA Professional Workers Can Get A TN Status - Law

Canadian and Mexican citizens take the privilege of getting a TN Visa to work in the United States. TN status is a special status given to non-immigrant Canadian and Mexican NAFTA professionals. The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States to allow the professionals of certain occupations of each country to work in each other countries.

On What Basis These Professionals Are Pertained To Work in USCanadian or Mexican Professionals may work in the U.S. if: The applicant is a citizen of Canada or Mexico; Their profession is on the NAFTA list; Position in the U.S. requires a NAFTA professional; Mexican or Canadian applicant is to work in a prearranged full-time or part-time job, for a U.S. employer. Self-employment is not permitted; Professional Canadian or Mexican citizen has the qualifications of the profession.

What Canadians Require for Acquiring TN Status?Canadian citizens usually do not need a visa as a NAFTA Professional, although a visa can be issued to qualified TN visa applicants upon request. A Canadian citizen without a TN visa can apply at a U.S. port of entry. A Canadian residing in another country with a non-Canadian spouse and child would need a visa to enable the spouse and child to be able to apply for a visa to accompany or join the NAFTA Professional, as a TD visa holder. Canadian professionals are admitted into the USA in the TN-1 status.

What Mexicans Require for Acquiring TN Status?Mexican citizens require a visa from a consulate in Mexico to request admission to the U.S. Once the TN visa stamp is obtained in the Mexican citizen's passport, they may enter the US in TN status in a similar manner to a Canadian citizen, and are admitted into the US in the TN-2 status.

Documents required for attaining TN status Online Nonimmigrant Visa Electronic Application, Form DS-160 A passport valid for travel to the U.S. and with a validity date at least six months beyond the applicant's intended period of stay in the U.S. One (1) 2x2 photograph. Letter of Employment in the U.S.

Also the applicants for TN status must show their intended stay is temporary, without the intent to establish permanent residence. Additionally, applicants must demonstrate that they have the following: Education: The applicant's employer must submit proof that the applicant meets the minimum education requirements. Work Experience: Documentation proving to the applicant's experience should be in the form of letters from former employers. If the applicant was self-employed, business records should be submitted proving that self-employment.

Spouses and ChildrenA TD visa is required for spouses and children (unmarried children under the age of 21) who are accompanying or following to join NAFTA Professionals (TN visa holders). A bona fide spousal or parent-child relationship to the principal TN visa holder must be demonstrated by the applicants. Applicants do not have to be citizens of Mexico or Canada. Spouses and children cannot work while in the U.S. though they are permitted to study.

TN Visas can apply for a period of up to three years. So anyone with TN visa cannot file for a green card or citizenship application form to adjust the status before changing the status to some other non-immigrant status. Now many ebooks store act as Immigration Guide to help getting TN visa.

TN / NAFTA VISA (Mexican and Canadian Professionals) - Law

The North American Free Trade Agreement (NAFTA) has created a special TN nonimmigrant visa category that permits Mexican and Canadian acting professional citizens to be granted admission into the US to engage in "business activities at a professional level."

In order to demonstrate eligibility for a TN / NAFTA visa, a requesting party must show that they are either a Mexican or Canadian citizen, that the their profession is recognized on the "NAFTA list", they have a valid and pending job offer from a United States employer, they possess the required licenses, degrees, or experience to perform the job offered, and they intend to depart the US upon completion of their designated authorized stay.

As benefit, a party holding a valid TN / NAFTA visa is entitled to request a TD dependent visa status for their spouse and children under the age of 21. These dependents may attend school as long as they continue to qualify under the TD visa classification criteria. Additionally, a valid TN / NAFTA visa holder can freely travel in and out of the United States.

In applying for the TN / NAFTA visa, requirements vary depending on your country of citizenship. For instance, Canadian citizens are not mandated to obtain a visa, but instead receive TN status with the USCIS at a "Class A" port of entry or at U.S. Preflight Inspection Stations.

In order to obtain this status however, a Canadian citizen may be asked and must be prepared to provide: proof that they are a Canadian citizen, a letter from the prospective United States Employer, college degrees and employment history demonstrating qualifications for the desired work, and proof of license to practice the profession if such documentation is required by the intended State of employment.

To the contrary, a Mexican citizen may apply at consular sections around the world for a TN / NAFTA professional visa. Mexican citizens must submit the following forms and / or documentations to be considered: Form DS-156, Form DS-157, a valid passport for travel to the United States with a validity date of at least six months beyond their intended stay in the United States, one 22 photograph, and their future United States employer must provide a letter of employment. This letter should indicate the position in question in the United States requires the employment of a person in a professional capacity, consistent with the NAFTA.

For more information on this or any other immigration law matter, contact an experienced immigration law attorney or the experienced Phoenix, Arizona based immigration law firm of Ariano & Reppucci, PLLC.

NAFTA and CARICOM part 2 - Law - International Law

There are many ways in which CARICOM has affected its member countries. Since it's

inception it has helped to coordinate a more positive interaction between it's members. Recently, the

Caribbean Disaster Emergency Response Agency (CDERA) has played a part in helping local

hurricane victims: Haiti, Cuba, Jamaica, The Bahamas, the Cayman Islands and the Turks and Caicos

Islands have all experienced the ferocity of the hurricanes. Lives have been lost, while homes,

infrastructure and agricultural producing areas have been destroyed by wind and floods...Technical

assistance, relief supplies and financial resources are being provided by the Caribbean Community

(CARICOM) to the countries affected by the disastrous events of the ongoing Atlantic hurricane

season. The Caribbean Disaster Emergency Response Agency (CDERA) has mobilized its resources

and is helping in the assessment of the damage and the provision of relief. A needs list is also being

developed to determine further needs of the affected countries (CARICOM press release, Caribbean

Community Secretariat).

Under CARICOM, the CSME implements: Free Movement of Goods and Services, the Right of

Establishment, A Common External Tariff, Free Circulation, Free Movement of Capital, A Common

Trade Policy, Free Movement of Labour, a Harmonization of Laws. Part of the CSME's job involves

(through 'Free movement of labour'): removing all obstacles to intra-regional movement of skills,

labour and travel, harmonizing social services (education, health, etc.), providing for the transfer of

social security benefits and establishing common standards and measures for accreditation and

equivalency (caricom.org). Another way CARICOM affects each country is (through 'Free Movement

of Goods and Services'): through measures such as eliminating all barriers to intra-regional movement

and harmonizing standards to ensure acceptability of goods and services traded (caricom.org).

There are not many options to being a part of CARICOM. Would it be possible, a Caribbean

state could become a member of NAFTA. This could potentially increase trade with the US and

Mexico. Given the economic status of a country like the United States, a Caribbean state might want to

avoid this decision because it might benefit the US more, and exploit their resources. CARICOM

provides many systems (in addition to trade) for its member countries and plays an important role in

their well being and future. One way is through programs like the Caribbean Renewable Energy

Program (CREP), whos goals are to:

-Reduce greenhouse gas emissions by removing barriers to renewable energy development

-Establish the foundation for a sustainable renewable energy industry

-Create a framework under which regional and national renewable energy projects are mutually supportive (caricom.org). It would not be beneficial to these countries to abandon their CARICOM

systems and support.

On March 21, 2003, a CARICOM member country (Trinidad and Tobago) initiated a dispute

with the US (NAFTA member): Antigua and Barbuda requested consultations with the US regarding

measures applied by central, regional and local authorities in the US which affect the cross-border

supply of gambling and betting services. Antigua and Barbuda considered that the cumulative impact of

the US measures is to prevent the supply of gambling and betting services from another WTO Member

to the United States on a cross-border basis (wto.org). After a long period, a resolving plan was

decided upon:

the United States stated its intention to implement the DSBs recommendations and indicated that it would need a reasonable period of time to do soOn 24 May 2006, the parties informed the DSB that, given the disagreement as to the existence or consistency of measures taken by the United States to comply with the recommendations and rulings of the DSB, they had agreed on certain procedures under Articles 21 and 22 of the DSU (wto.org). On November 18, 1999 CARICOM brought a dispute with Costa Rica to the World Trade organization: On 18 November 1999, Costa Rica requested consultations with Trinidad and Tobago in respect of the anti-dumping investigation being carried out by Trinidad and Tobago at the request of the company Cereal Products Limited against imports of pasta from the Costa Rican company Roma Prince Sociedad Annima (wto.org).What the Caribbean Community does undoubtedly affects the rest of the world. Its economy is a small part of a larger world economy. Althoug h the Caribbean Community is geographically closer to my country (USA), it might not affect me to the extent that another country on the other side of the world does, such as china. Recently, Florida Governor Charlie Crist has set up a meeting with CARICOM to try and establish trade. This possible collaboration can affect my countrys economy in a positive way. New goals could further alter the culture of South Florida (where I grew up): Coming out of the meeting was an agreement to look at ways in which the state could incorporate cultural events, such as the annual Caribbean Carnival and Jerk Festival, in the general roster of tourist attractions in Florida (BBC). A smoother system for Caribbean immigrants could further increase the Caribbean Population in Florida and the US. More recently, talks are underway regarding the USs relations with Cuba: At a historic gathering in Cuba, CARICOM [Caribbean Community] leaders yesterday called for the lifting of a decades-old US eco nomic embargo on Havana, piling early pressure on President-elect Barack Obama (BBC). This would be a historic decision for the US and could open trade traffic between the US and Cuba, possibly further changing the culture and economy of South Florida. Both NAFTA and CARICOM have a direct impact on the political and economic systems in their respective countries. There have been positive increases in trade in both areas, though many oppose NAFTA or CARICOM for their own reasons. Some believe NAFTA has caused them job loss and others oppose CARICOM. NAFTA has allowed for an increase in trade among Canada, the US, and Mexico, and CARICOM has helped shape the safety, political ties, and education of Caribbean countries. Governmental structures must now take into consideration these groups in their decision and policies.

BIBLIOGRAPHY

North American Free Trade Agreement. 1998. NaftaNow.org. 3 March 2009..

Selko, Adrienne. NAFTA: LEARNING TO LOVE THY NEIGHBOR. IndustryWeek. 1 Feb 2009: Pg. 38.

Drajem, Mark. White House defends NAFTA from Democrats; Clinton, Obama pledge to pull out of trade agreement. National Post (Canada). 5 March 2008: A13

OKeefe, Thomas Andrew. Potential Conflict Areas In Any Future Negotiations Between Mercosur And The NAFTA To Create A Free Trade Area Of The Americas. Arizona Journal of International and Comparative Law. 1997: pp.305-318.

DISPUTE SETTLEMENT: DISPUTE DS309- China: Value-Added Tax on Integrated Circuits. 2004. WTO.org. 4 March 2009 .

Scott, Robert E. NAFTA-related job losses have piled up since 1993. 10 Dec. 2003. Economic Policy Institute. 4 March 2009 .

CARICOM rallying to help hurricane victims. 18 Sep 2008. Caribbean Community Secretariat (CARICOM). 4 March 2009 .

The CARICOM Single Market and Economy (CSME). 2009. Caribbean Community (CARICOM) Secretariat. 4 March 2009 .

Caribbean Renewable Energy Programme (CREDP). 2009. Caribbean Community (CARICOM) Secretariat. 4 March 2009 .

DISPUTE SETTLEMENT: DISPUTE DS285- United States: Measures Affecting the Cross-Border Supply of Gambling and Betting Services. 2008. WTO.org. 3 March 2009 .

US state governor aims to set up trade missions to Caribbean. 3 Nov. 2007. BBC Monitoring Latin America Political Supplied by BBC Worldwide Monitoring. Lexis-Nexis. 3 March 2009.

CARICOM urges new US president to end Cuba embargo. 10 Dec. 2008. BBC Monitoring Latin America Political Supplied by BBC Worldwide Monitoring. Lexis-Nexis. 3 March 2009.

DISPUTE SETTLEMENT: DISPUTE DS185- Trinidad and Tobago: Anti-Dumping Measures on Pasta from Costa Rica. 2009. WTO.org. 3 March 2009 .

Understanding The North American Free Trade Agreement (NAFTA) - Business - Business Ideas

Understanding the facets of the North American Free Trade Agreement is invaluable if your company is manufacturing in Mexico.

Many believe NAFTA - enacted in 1994 to erode trade and investment barriers between the United States, Mexico and Canada - makes doing business in Mexico duty free. While most companies shipping merchandise to a manufacturing plant in Mexico may qualify for tariff-free status on those items, certain customs paperwork requirements must be met to ensure businesses are aligned with NAFTA policies.

"Not everything going into Mexico is duty free," notes Steve Haywood, president of FOCUS Business Solutions, Inc., a nationally licensed U.S. Customs brokerage firm specializing in NAFTA Customs-regulations issues. "As you know, Mexico has something called Sectoral Programs, also known as PROSEC. Materials eligible for PROSEC may be able to enter as an import, Mexico-duty-free, or may be subject to tariffs of up to five percent."

PROSEC was implemented by the Mexican government as a means of overcoming challenges faced by international factories, or maquiladoras, in Mexico after NAFTA took root. The maquiladoras' trials stemmed from NAFTA's Article 3, which states participants cannot waive or reduce import tariffs conditioned upon the export of the finished goods to another NAFTA country.

While PROSEC is a measure allowing foreign or domestic producers to petition the government for either tariff reduction or elimination regardless of whether the finished product will be sold within the country or exported, it only applies to certain sectors of the Mexican economy - including automotive, textiles and electronics.

Companies conducting business in Mexico may take advantage of PROSEC without a NAFTA certificate. Still, if a business intends to manufacture and ship products to the States for consumption, NAFTA certificates must be secured for the raw materials used.

Businesses shipping goods to and from Mexico from non-NAFTA-regulated countries also may take advantage of "Regla 8" or Rule 8 - another tool provided by the Mexican government inviting imports across its border duty free. When these items are shipped to the United States after assembly, however, they can encounter U.S. tariffs and may not necessarily qualify for NAFTA treatment, Hayward points out.

To reap NAFTA benefits, claim Prosec status or utilize Regla 8, a company producing goods in Mexico for shipment to the States must first file a Certificate of Origin, which states items covered by the certificate are "originating" goods as defined in NAFTA Chapter 4. For preferential tariff consideration, the certificate must be completed by the exporter and be in the importer's possession when the declaration is made. Incorrect or fraudulent Certificates of Origin can mean penalties for the exporter should a Customs audit occur.

Free trade - or reduced-duty trade - is good business. U.S. government sources cite Canada and Mexico as the top two consumers of U.S. exports in 2010, spending $248.2 and $163.3 billion on American goods, respectively. The United States concurrently purchased $276.4 billion in Canadian products and spent $229.7 billion on Mexican imports. Moreover, bilateral trade between Mexico and the States has more than quadrupled in the last two decades .