Inter National Trade Law By M.anudeep

Globalization of International Trade with regarding to Human Rights.
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    December 1969
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SUMMARY This project aims at understanding Globalization is increasing the integration of national markets and the interdependence of countries worldwide for a wide range of goods, services, and commodities. In the past 30 years, international trade flows have expanded dramatically and, generally, at a rate faster than global output, with a doubling of the value of trade in a 10-year period. Several factors have played an important role in the recent expansion of trade, the growing integration of economies, and the increasing contribution of trade to development. These include the liberalization of tariffs and other barriers to trade; foreign direct investment through trade and investment negotiations and agreements; autonomous unilateral structural reforms; technological innovations in transport and communications; international solidarity through supportive measures. This discussion so far helps us establish that, the strategic use of policies, experimentation and innovation. Trade driven globalization is also manifested in the changing geography of the world economy today. This Project report discusses the systemic evolution of the international trading system. It outlines some of the new opportunities arising from international trade and some of the persistent challenges that come in the way of assuring development gains from such trade. It argues that national, regional, and international trade and development strategies need to take the specificities of developing countries. This chapter also points to some policy measures which could be undertaken to allow developing countries to participate more fully and beneficially in international trade. My thesis also discusses about the increased dynamism in international trade and the growing role of developing countries. The key factors fostering international trade and the participation of developing countries are highlighted. These include the vibrant performance of some dynamic economies, and the trade in new and dynamic sectors of world trade. The connection between trade and development is complex and needs continuous assessment. This project has also emphasized discusses the increasing opportunities for labour integration and mobility for skills trade in the context of trade and investment-led globalization.It argues that developing countries can reap significant gains by expanding anddiversifying their economies through increasing the development of, and trade in, services. My project thesis looks at the legal frameworks for globalization and for human rights, then asks to what extent globalization is good for human rights and to what extent human rights are good for globalization. It then considers several legal responses to globalization as they relate to the promotion and protection of human rights. This Article concludes that responses to globalization are significantly changing international law and institu-tions in order to protect persons from violations of human rights committed by non-state actors. 1 INTRODUCTION: The phenomenon of globalization began in a primitive form when humans first settled into different areas of the world; however, it has shown a rather steady and rapid progress in the recent times and has become an international dynamic which, due to technological advancements, has increased in speed and scale, so that countries in all five continents have been affected and engaged. International human rights law aims primarily to protect individuals and groups from abusive action by states and state agents. 1.Recent developments throughout the world, including failed states, economic deregulation, privatization, and trade liberalization across borders—components of what has come to be known as globalization—have led to the emergence of powerful non-state actors who have resources sometimes greater than those of many states. 2 .Two opposing views of globalization and its relationship to human rights have emerged: some see the two topics as mutually reinforcing and positive in improving human well-being, while others view globalization as posing new threats not adequately governed by existing international human rights law. The legal relationship between globalization of trade and human rights can be analyzed from the perspective of economic regulation as well as that of human rights law, examining first whether international economic law sufficiently supports or takes into account human rights concerns, then considering the extent to which human rights law takes into account globalization trade and1 economic interests. In respect to both inquiries, the fundamental question is whether a human rights system premised on state responsibility to respect and ensure human rights can be effective in a globalized world. 2.)What Is Globalization? Globalization is defined as a process which, based on international strategies, aims to expand business operations on a worldwide level and was precipitated by the facilitation of global communications due to technological advancements, and socioeconomic, political and environmental developments. The goal of globalization is to provide organizations a superior competitive position with lower operating costs, to gain greater numbers of products, services and consumers. This approach to competition is gained via diversification of resources, the creation and development of new investment opportunities by opening up additional markets, and accessing new raw materials and resources. Diversification of resources is a business strategy that increases the variety of business products and services within various organizations. Diversification strengthens institutions by lowering organizational risk factors, spreading interests in different areas, taking advantage of market opportunities and acquiring companies both horizontal and vertical in nature. Globalization of international trade is increasing the integration of national markets and the interdependence of countries worldwide for a wide range of goods, services, and commodities. In the past 30 years, international trade flows have expanded dramatically and, generally, at a rate faster than global output, with a doubling of the value of trade in a 10-year period since the mid-1990s. Several factors have played an important role in the recent expansion of trade, the growing integration of economies, and the increasing contribution of trade to development. These include the liberalization of tariffs and other barriers to trade; 1 Globalization of international trade of developed countries… 2 foreign direct investment through trade and investment negotiations and agreements; autonomous unilateral structural reforms; technological innovations in transport and communications; international solidarity through supportive measures (like trade preferences); and the strategic use of policies, experimentation and innovation. Trade driven globalization is also manifested in the changing geography of the world economy today. Assuring development gains from international trade in the context of trade-driven globalization necessitates improving the quantitative benchmarks of integration in international trade. Industrialized or developed nations are specific countries with a high level of economic development and meet certain socioeconomic criteria based on economic theory such as gross domestic product (GDP), industrialization and human development index (HDI) as defined by the International Monetary Fund (IMF), the United Nations (UN) and the World Trade Organization (WTO). Using these definitions, some industrialized countries in 2010 were: Austria, United Kingdom, Belgium, Denmark, Finland, France, Germany, Japan, Luxembourg, Norway, Sweden, Switzerland, and the United States. 3.)SYSTEMIC EVOLUTION OF THE INTERNATIONAL TRADINGSYSTEM: The international trading system today incorporates a much broader range of economic issues,rules, disciplines, and commitments than did the pre-1994 regime of the General Agreement on Tariffs and Trade (GATT). Due to the expanded scope of World Trade Organization (WTO) agreements, topics such as services and traderelated aspects of intellectual property rights – whose international dimensions were previously handled through sector- or subject-specific agreements and arrangements– have now been brought within the scope of multilateral trade policy. As a result, not only goods but the cross-border movements of services, and the protection of intellectual property are now included in the overall agenda of national, regional and international trade policy. Moreover, what were once considered nontrade issues (such as labour practices, environmental standards, and even human rights) are now being linked to market access conditions, particularly as part of the formation of a plethora of regional trade agreements (RTAs) and preferential trade agreements. The development processes in developing countries are being comprehensively affected by the rules of the trading system, in addition to the trade policies of their major partners. Developing countries need to strategically manage and balance many more variables in the trade and development policy matrix than ever before. 4.)Globalization and International law trade: Globalization refers to the growing interdependence of countries resulting from the increasing integration of trade and finance in one global market. Globalization of international trade and cross-border investment flows are the main elements of this integration. Moreover, for the countries that are actively engaged in in globalization and benefits for different countries and the world economy is one of the hottest topics in development debates on globalization of trade. 2 5.)The evolving multilateral trading system in globalization: 2 Globalization and International trade(internet) 3 Since 1995, the globalization of international trading system has undergone a number of major changes. In the pre-Uruguay Round environment, the multilateral trading system was focused mainly on border measures in trade in goods. It recognized the structural and economic challenges faced by developing countries, and provided them with some special and differential treatment. As compared to the GATT 1947, the scope of the trading system was extended toagriculture, textiles and clothing, services, trade-related investment measures, and trade-related aspects of intellectual property rights. As tariffs were lowered and as a result of globalization trade disciplines were extended to development policies and measures previously falling exclusively within the domestic jurisdiction, the national policy space for developing countries contracted. On the other hand, the rule of law represented by the strengthened rules in the WTO worked to their advantage in several areas. In particular, the strengthened, quasi judicial and automatic dispute settlement system that underpins the compliance of WTO members to negotiated disciplines and commitments, has provided effective trade justice avenues to them. Some developing countries are making effective use of the dispute settlement mechanism all though fuller utilization and benefit is constrained by factors like the lack of capacity of developing countries to ensure the enforcement of decisions. 6.)International trade law adjustment issues: Multilateral and regional trade negotiations and the resultant trade agreements engender changes in policies, legislations and strategies to comply with, adapt to and take advantage of the new trading dispensation. Such trade liberalization is expected to generate trade and welfare gains in the long run, at least in the absence of externalities. However, there are often short- to medium-term adjustment implications of trade reforms. This is because, as economies open up, imports use existing channels while new exports often come from different sectors that have to gear up production and find new markets. As this transition takes place, the structural unemployment that occurs is, perhaps, the major social cost of adjusting to trade reforms. Countries as advanced as the United States recognize that, unlike job losses that are the consequence of technological change or competition, any form of trade globalization that affects domestic industries and employment is a policy choice. Thus, the State has an obligation to ensure that the costs are not borne by the most vulnerable workers alone. This can be witnessed for example from the proposed United States’ Trade and Globalization Adjustment Assistance Act of 2007 to assist workers, communities, firms, and farmers affected by trade globalization with any country. Developing countries need adjustment assistance that goes beyond implementation support to see them through the liberalization process at least as much as – and most certainly more than –developed countries. A key role can be played here by both the donor community and international financial institutions to provide adjustment support, including through the aid for trade initiative. This is particularly so where the affected countries are already heavily in debt. 7.)Role of globalization of international trade on human rights in the world: In years, the many facets and importance of the complex interplay of human rights and globalization of trade are reflected in the multiple studies conducted on aspects of globalization by the human rights organs of the United Nations (U.N.). The SubCommission on the Promotion and Protection of Human Rights (Sub-Commission) has undertaken studies on transnational corporations,49 on the impact of 4 globalization on the enjoyment of human rights generally, the impact of globalization on racism and xenophobia, the relationship between the enjoyment of human rights and income distribution, and on human rights as the primary objective of international trade, investment, and finance policy and practice. 8.)Beneficial effects of globalization of trade: Some economists have a positive outlook regarding the net effects of globalization on economic growth. These effects have been analyzed over the years by several studies attempting to measure the impact of globalization of trade on various nations' economies using variables such as trade, capital flows and their openness, GDP per capita, foreign direct investment (FDI) and more. These studies examined the effects of several components of globalization on growth using time series cross sectional data on trade, FDI and portfolio investment. Although they provide an analysis of individual components of globalization on economic growth, some of the results are inconclusive or even contradictory. However, overall, the findings of those studies seem to be supportive of the economists' positive position instead of the one held by the public and non-economist view. Trade among nations via the use of comparative advantage promotes growth, which is attributed to a strong correlation between the openness to trade flows and the affect on economic growth and economic performance. Additionally there is a strong positive relation between capital flows and their impact on economic growth. 3 Harmful effects: Non-economists and the wide public expect the costs associated with globalization of trade to outweigh the benefits, especially in the short-run. Less wealthy countries from those among the industrialized nations may not have the same highlyaccentuated beneficial effect from globalization of trade. Another possible danger and harmful effect is the overuse and abuse of natural resources to meet the new higher demand in the production of goods. 9.)Effects of globalization of trade on human rights: a.)Globalization of international trade increasing the importance of services economy: Services contribute to economic growth and development through the creation of a competitive economy, by providing new jobs, by enhancing access to essential services, and by stimulating trade. Service sectors such as business and finance, telecommunications, construction, environment, distribution, healthcare, education, and cultural services provide the backbone of an integrated and effective economy, nationally, regionally and globally. An improved services economy contributes to improved performance in merchandise trade since the increased sophistication and availability of producer services enhances international competitiveness in the export of primary and manufactured goods. The informal services sector is also an important aspect of the services economy in developing countries. With globalization, the potential for developing countries to expand and diversify their economies through the increased development and trade in services is immense. Moreover, increased services trade can generate significant development gains – i.e. far more than can be 3 Globalization of international trade of developed countries 5 realized through the narrow focus on increasing the exports of primary commodities and manufactures alone. Thus, services hold a huge potential as en engine for realizing development gains in developing countries. b.)Social and Employment Impacts of Globalization and Trade: Over the past decades trade and financial flows have played an increasingly important role in the world economy, contributing significantly to economic growth both at the global level and within individual countries. However, trade and financial openness increase interdependence and therefore expose countries, workers and businesses to external shocks and volatility with possibly severe consequences for employment, as illustrated during the recent global financial and economic crisis. Effect of globalization of trade during and after the crisis highlights a set of challenges: not all households within a country will benefit equally from globalization; not all companies will manage to become part of international supply chains; and not all countries will manage to integrate into the world economy in the same way and generate new employment opportunities from openness. While trade globalization was expected to help the less skilled, who are presumed to be the relatively abundant factor in developing countries, there is overwhelming evidence that they are generally not made better off relative to workers with higher skill or education levels. The very scant evidence that exists on these issues, however, seems to suggest that the labourr market effects of globalization dominate its effects on consumption through relative price changes. C.)Globalization effect on agriculture: Globalization of Trade, Capital Flows and Labour has led to many desired and undesired effects. While the globalization of Services and Industry has been extensively dealt with, the Effects of Globalization of Agriculture has been ignored by the media and academia. One thing that is clear to me is that has contributed hugely to the Price Rise in Food. The cause of Food Inflation which has led to increased hunger and starvation in developing countries are the quite varied and listed below. a) Rise of Food Commodity as Asset Class – Various Funds launched by Investment Banks have led to higher prices of agricultural products. Fund Managers are increasingly using these funds based on derivatives of corn, wheat, rice, etc as a long only investment. While earlier food prices were determined by current supply and demand curves, nowadays future demand/supply perceptions are increasing affecting these prices mostly on the upside b) More Trade in Agriculture – With growth in trade route and transportation has led to convergence in global food prices. This leads to divergence of food away from needy people in the East towards more affluent societies in the west. India has had to import export controls on food to stop steep rises in food prices. Despite these measures, India has seen food inflation of more than 15% over the last year. c) Increased Usage of Crops for Bio fuel - Countries like US and Brazil have mandated increased usage of bio fuel as a substitute for petroleum based fuel for Transportation. Large amounts of crops like Corn are being diverted towards the manufacture of bio fuels. Land which was meant for other crops is also being 6 converted for usage of bio fuel based crops. While the Global Financial Crisis has somewhat cooled the Corn prices, the return of economic growth. d.)The Economic impact on developed Nations: Globalization compels businesses to adapt to different strategies based on new ideological trends that try to balance rights and interests of both the individual and the community as a whole. This change enables businesses to compete worldwide and also signifies a dramatic change for business leaders, labor and management by legitimately accepting the participation of workers and government in developing and implementing company policies and strategies.4 Globalization of trade brings reorganization at the international, national and subnational levels. Specifically, it brings the reorganization of production, international trade and the integration of financial markets, thus affecting capitalist economic and social relations via multilateralism and micro economic phenomena, such as business competitiveness, at the global level. The transformation of the production systems affects the class structure, the labor process, the application of technology and the structure and organization of capital. e)Impact of Globalization of Trade regarding health prespective: One major problem is the increasing internationalization of health risks. How-ever defined, this term has many dimensions, including economic, technological, political, social, scientific and cultural aspects. The links between globalization and health are complex and globalization is a multifaceted phenomenon that can affect health in myriad ways. Its consequences can be either direct, at the level of whole populations, individuals and healthcare delivery systems, or indirect, through the economy and other factors, such as education, sanitation and water supply. The positive is that one can adopt the recent growing advanced health techniques in improving health conditions of public. We can also adopt advance health techniques in treatment in hospitals with global standards. 10.)Globalization development: of trade; effect on environment and sustainable Globalization has led to increased public awareness of the environmental effects of trade growth and the important developmental implications of issues in the interface between trade and environment. There is a general recognition that increased trade flows that result from globalization have to be accompanied by environmental sustainability and poverty reduction to truly achieve sustainable development. Environmental impact is perceived as an increasingly important factor of production that directly bears on production costs, competitiveness and opportunities in international trade. If properly implemented, trade liberalization can lead developing countries to access new environmentally sound technologies, goods, services, and production methods. These can facilitate transition to environmentally sustainable production and consumption patterns and augment their international 4 Globalization of International Trade law on human rights(legal articles; internet) 7 competitiveness. For the first time in the history of the GATT/WTO, trade and environment issues have become a negotiating subject of global liberalization. Hence the environmental effects of enhanced trade are being much emphasized in globalization. Issues at the intersection of trade liberalization, environmental protection and economic development have become more closely integrated with globalization. These are climate change and biodiversity; new environmental, health, and foodsafety requirements; and access to environmental goods, services and technologies, and related sustainable production methods. The scale, composition and technique effects considered above are best described as the indirect effects of globalization. They all stem from changes in relative prices that stem from integration with the global economy. Surprisingly, much of the economics literature has ignored the direct effects of increased trade, specifically increases in emissions and other externalities from the transport sector responsible for moving goods and embodied services (personnel and tourists) between countries. The following section provides a very brief overview of environmental damages and other spill over from the transport sector. Case law- Tuna – Dolphin Case The Tuna Dolphin case caught world’s attention by bringing into focus the perceived tension between the concerns of the environment and the law of international trade. Indeed the case became the centre stage of contention for a variety of different interests groups including environmentalists that were or had become hostile to GATT and rules of international trade generally. The origin of what became known as the “tuna-dolphin” case was the United States’ Marine Mammal Protection Act (MMPA), which imposed a ban on imports of tuna from countries that did not have a conservation program designed to protect dolphins in the tuna-fishing process. Tuna, it turns out, are often found swimming in schools underneath dolphins. In order to catch the tuna, fishermen used to drag large nets through the water and then pull them up under the tuna. Dolphins swimming above the tuna would be caught at the same time and die in the nets along with the tuna. The MMPA therefore required American tuna fishermen to adjust their fishing practices to avoid such deaths and banned tuna from countries in which dolphin deaths from tuna fishing exceeded deaths from U.S. tuna fishing by more than 25 percent. As a result, tuna from Mexico, Venezuela, Panama, Ecuador, and the tiny Pacific island of Vanuatu were banned in 1990. Mexico and Venezuela challenged the U.S. action in the dispute resolution system of the GATT and won their cases in 1991 and 1992. The decision in the Mexico case is considered a key turning point in jurisprudence of the world trade system, even though it was not officially adopted as a binding decision by the members of the GATT. More Case Laws:- 1.) TUNA2 Case 2) GILLNET Case 3) BLUEFIN Case 8 4) PACTUNA Case 5) DRIFTNET Case 6) SALMON2 Case 7) SALMON Case 8) TURBOT Case 9) SHARK Case 10) SHRIMP2 Case 11.)Is Globalization Good for Human Rights? There is considerable debate over the question of whether or not globalization is good for human rights. One view is that globalization of trade enhances human rights, leading to economic benefits and consequent political freedoms. The positive contributions of globalization have even led to the proposal that it be accepted as a new human right. In general, trade theory predicts a significant increase in global welfare stemming from globalization, indirectly enhancing the attainment of economic conditions necessary for economic and social rights. Many thus believe that market mechanisms and globalized trade will lead to an improvement in the living standards of all people. Some also posit that free trade and economic freedom are necessary conditions of political freedom, or at least contribute to the rule of law that is an essential component of human rights. Certainly, globalization facilitates international exchanges that overcome the confines of a single nation or a civilization, allowing participation in a global community. There is also the possibility that economic power can be utilized to sanction human rights violators more effectively. Ease of movement of people, goods, and services are enhanced. Increased availability and more efficient allocation of resources, more open and competitive production and improved governance could lead to faster growth and more rights. Trade globalization promotes the growth of stabilitypromoting middle class all over the globe; trade enhances efficiency and wealth and thereby creates potential revenue for environmental protection. Opponents of globalization see it as a threat to human rights in several ways. First, local decision-making and democratic participation are undermined when multinational companies, the World Bank, and the IMF set national economic and social policies. Second, unrestricted market forces threaten economic, social, and cultural rights such as the right to health, especially when structural adjustment policies reduce public expenditures for health and education. Third, accumulations of power and wealth in the hands of foreign multinational companies increase unemployment, poverty, and the marginalization of vulnerable groups. Globalization is leading to greater problems of state capacity to comply with human rights obligations, particularly economic, social, and cultural rights, such as trade union freedoms, the right to work, and the right to social security. The process of trade globalization has also led to growth in the informal sector and increased female participation therein. Employment in the informal sector generally means that employment benefits and mechanisms of protection are unavailable. Underemployment seems to be as big a problem as open unemployment. 9 So we can understand that globalization of trade is having a great effect on human rights which may have a positive and negative effects basing on it’s allowance and agreements between the countries of their globalization of trade. 12.)Should all the countries be equally open to the globalization of foreign trade? Any country that attempts to produce almost everything it needs domestically deprives itself of the enormous economic benefits of international trade. But narrow international trade which makes a country dependent on exports of one or few goods on only same country, can also be risky because of the possibility of sudden un favourable changes in demand from world markets. Such changes can significantly worsen a country’s terms of trade. For instance, countries with large domestic markets generally trade less. At the same time, countries that are well endowed with a few natural resources , such as oil, tend to trade more. Think of examples of countries whose geographic location is particularly favourable or unfavourable for their participation of global trade. So despite the risks, many countries should be equally open for globalization of free trade. 10 Conclusion: The key international legal developments that appear to be emerging as a result of globalization, as discussed above, seem to be the following. First, human rights institutions and activists are asserting a primacy of human rights law over other fields of international law. Globalization of trade has created centers of power that are alongside, even in competition with the power of states. Accountability for human rights violations and prevention of future ones must today and in the future take into account these non-state actors: the media, corporations, and international organizations such as the WTO and the World Bank. States and their agents are no longer the only or sometimes even the key actors responsible for ensuring that human rights and freedoms are guaranteed. Globalization of trade also increases the employment sector to every country. Of course it may include much competition to insiders and outsiders of the country regarding to employment but let us have a positive out look about this point. It also creates much exposure to country and it can analyze its’s standard regarding to science and technology, development , economical growth etc. We can also analyze the environmental , employment , health and living standards of the people of a country participating in international market. According my research knowledge I could find much more positive affects of globalization of trade on the human rights including enhancing the standards of any country which participates in international trade. 11 REFERANCES 1.)Globalization and International trade(internet) 2.)Globalization of International trade for development; international trade perspective(internet) 3.)Globalization of Trade : Opportunities and challenges(pdf internet) 4.)Globalization of International Trade law on human rights(legal articles; internet) 5.Globalization of international trade of developed countries. (internet) 6.)Effects of globalization on International Trade and development (internet) 7)Globaliziation of International Trade perspective by United Nations Organization (pdf file internet) 12 Acknowledgement I, M.Anudeep Reddy of third year B.A,LL.B(HON’s) from APNLU want to thank for giving this golden opportunity to acquire a knowledge about Globalization and International Trade in International Trade law regarding to Human Rights. We had the support of M. Madhavi mam, teaching faculty of international Trade Law and P.Subhakar Reddy, our Co-ordinator for each and every movement of our hard work by which we could complete the project. We would also like to thank mam for coming up with the new idea of doing the project and giving our vi-va which we have not done in our three years. We would also take the immense pleasure to thank our vice-chancellor, Register sir and Academic co-ordinator sir for giving us back-up unknowingly. 13 A.P NATIONAL UNIVERSITY OF LAW VISAKHAPATNAM Subject: International Trade LawTOPIC: Globalization of International Trade with regarding to Human Rights. Submitted to: M. Madhavi Presented by: M. Anudeep Reddy B.A.L.L.B(HONS) 3rd yr,VI- SEM Roll no:200905 14 CONTENTS 1.)INTRODUCTION 2.)What is globalization 3.)Systematic evolution of International Trading System 4.)Globalization and International Trade 5.)Evolution of Multi-Lateral Trading System in Globalization 6.)International Trade law adjusting issues 7.)Role of Globalization of International Trade on Human Rights in the World 8.)Beneficial effects of Globalization of Trade 9.)Effects of Globalization of trade on human Rights 10.)Globaliztion of Trade, effect on environment and sustainable development 11)Is Globalization good for human rights..? 12)Should all countries be equally open for the Globalization of Foreign Trade.? 13.)Conclusion A.P.UNIVERSITY OF LAW 15 VISAKHAPATNAM 16