Law Commons^™

Rethinking The Foreign Direct Investment Process And Incentives In Post-Conflict Transition Countries, Kojo Yelpaala

Northwestern Journal of International Law & Business

Burdened by the remnants of conflict, continuing threats of security lapses, significant market failures and weak institutions, post-conflict transition countries can hardly be described as normal economies. The task of transforming them into vibrant, productive, and self-sustaining economies is no simple assignment. Constructing the blueprint for reconstruction and economic development requires creativity of the first order. Conventional theories or pure neo-liberal market driven policy levers preached by the Washington Consensus Group are not likely to be productive. The design of the investment regime for development should therefore focus on non-conventional policy constructs. Contrary to the received theories, the history and …

Proportional Pragmatism: A Defense Of International Arbitration Agreements In The Face Of Asymmetrical Paternalism, Rusty O'Kane

Northwestern Journal of International Law & Business

With foreign direct investment's increasingly important role in the global market, a more comprehensive regulatory system has emerged to guide key participants. Bilateral investment treaties have developed as an essential piece of the emerging regulatory system. Bilateral investment treaties are "[international investment] agreements between two countries for the reciprocal encouragement, promotion and protection of investments in each other's territories by companies based in either country." These treaties have drastically affected the way foreign investors interact with host countries, especially in the area of dispute resolution. A distinctive feature of many BITs is that they provide for alternative dispute resolution procedures …

Foreign Direct Investment In The United States: Achieving A Balance Between National Economy Benefits And National Security Interests, Joanna Rubin Travalini

Northwestern Journal of International Law & Business

This Note addresses the transformation of foreign direct investment in the United States in light of heightened national security standards since the September 11, 2001 attacks and highlights the treatment of three cross- border deals that made U.S. government officials question the thoroughness of foreign investment review policies. Despite the enactment of stricter guidelines in the review of foreign investment transactions, Congress must reexamine the extent of its influence in the process to ensure the retention of open and consistent foreign investment policies in the United States while preserving the best interests of those within its borders.

The New Poor At Our Gates: Global Justice Implications For International Trade And Tax Law, Ilan Benshalom

Faculty Working Papers

The Article explains why international trade and tax arrangements should advance global wealth redistribution in a world of enhanced economic integration. Despite the indisputable importance of global poverty and inequality, contemporary political philosophy stagnates over the controversy of whether distributive justice obligations should extend beyond the political framework of the nation state. This stagnation results from the difficulty of reconciling liberal impartiality with notions of state sovereignty and accountability. The Article offers an alternative approach that bypasses the controversy of the current debate. It argues that international trade results in relational distributive duties when domestic parties engage in transactions with …

The European Court’S Political Power Across Time And Space, Karen Alter

Faculty Working Papers

This article extracts from Alter's larger body of work insights on how the political and social context shapes the ECJ's political power and influence. Part I considers how the political context facilitated the constitutionalization of the European legal system. Part II considers how the political context helps determine where and when the current ECJ influences European politics. Part III draws lessons from the ECJ's experience, speculating on how the European context in specific allowed the ECJ to become such an exceptional international court. Part IV lays out a research agenda to investigate the larger question of how social support shapes …

Antidumping And Cotton Subsidies: A Market-Based Defense Of Unfair Trade Remedies, Nadia E. Nedzel

Northwestern Journal of International Law & Business

This article argues that trade remedies, problematic though they may be, provide a legal framework in which litigation can and must be promulgated to protect the benefits of a global market economy.

"The Little State Department": Hollywood And The Mpaa's Influence On U.S. Trade Relations, Kevin Lee

Northwestern Journal of International Law & Business

In this article, I argue that the U.S. government has actively advocated domestic film industry interests in bilateral and multilateral trade agreements because of Hollywood's importance to the U.S. economy, and also because of the MPAA's influential lobbying efforts. Furthermore, I show that the MPAA has intervened directly in bilateral trade relations to protect its interests, even when such interests may run counter to the benefit of the U.S. economy.

Globalization And The Business Of Law: Lessons For Legal Education, Carole Silver, David Van Zandt, Nicole De Bruin

Northwestern Journal of International Law & Business

Cross-border law practice is growing to serve the increasingly global business of its clients, and U.S. and U.K. firms have been leaders in this global expansion of law practice. Expansion takes several forms, including the physical--with law firms opening offices in faraway locations to serve existing and new clients1--as well as the virtual--based on technology that supports the economics of cross-border activity by enabling practice apart from physical presence. Whether working for global or local organizations, lawyers today are increasingly faced with the prospect of working with colleagues and competitors who are diverse in terms of nationality, education and training, …

Lawyers, Law Firms, And The Stabilization Of Transnational Business, John Flood, Fabian Sosa

Northwestern Journal of International Law & Business

Cross-border business transactions are complex. But in this globalized age, as commentators such as Ohmae have argued, business ought to be conducted simply despite national boundaries. Yet there are features of business that run counter to globalization and maintain a resolutely local character. A crucial aspect of this is the nature of law. No transaction can be carried out without a normative structure to provide a framework for the actors to operate within. Obligations, rights, warranties, covenants, and so on have to be specified and allocated. Even economists agree that the rule of law is essential for the conduct of …

"Perfectly Properly Triable" In The United States: Is Extradition A Real And Significant Threat To Foreign Antitrust Offenders?, Daseul Kim

Northwestern Journal of International Law & Business

Seeking extradition of foreign officers in charge of foreign corporations for trial in the United States is one of the latest policies that the U.S. Department of Justice ("DOJ") has adopted to enforce U.S. antitrust laws internationally. As a result, the world has become a much riskier place for foreign officers and executives, who, in the past, could practically ignore U.S. antitrust laws and still hide safely behind the protection of their own countries' borders. The DOJ expects this "real and significant" threat of extradition to incentivize foreign corporate officers to comply with U.S. antitrust laws by altering their conduct, …

Beyond Enron: Regulation In Energy Derivatives Trading, Alexia Brunet, Meredith Shafe

Northwestern Journal of International Law & Business

The bankruptcy of the Enron Corporation in December 2002 is the biggest corporate bankruptcy in U.S. history. The Houston-based company, formed in 1985, became the nation's seventh-largest company in revenue by buying electricity from generators and selling it to consumers. Because Enron made the market in energy trading, its collapse fundamentally altered the U.S. energy trading industry. Equally important, the disclosure of Enron's role in California's power market crisis shattered confidence in deregulated wholesale-electricity and natural gas markets, creating obstacles for new players seeking to restore confidence in energy trading markets. New market entrants offer their clients a more complete …

A Finger In The Dike? An Examination Of The Efficacy Of State And Federal Attempts To Use Law To Stem Outsourcing, Beverley Earle, Geralk A. Madek, Christina Madek

Northwestern Journal of International Law & Business

Many people, not just in the United States, are concerned about the implications of this growth in outsourcing for the future of business. State governments in particular are trying to stop outsourcing and are using the law as a means to do so. However, are these attempts, which are variants of the old "buy American" programs, doomed to be ineffective and ultimately protectionist, without really protecting American business? This paper will examine the developments of offshoring, outsourcing, and insourcing in Part II. Part III examines both state and federal legal efforts to restrict this growth. Part IV examines the WTO …

From North-South Divide To Private-Public Debate: Revival Of The Calvo Doctrine And The Changing Landscape In International Investment Law, Wenhua Shan

Northwestern Journal of International Law & Business

After dominating Latin American states for over a century, the Calvo Doctrine has been widely described as "dead," particularly in the wake of the global tide of economic liberalization that began in the 1990s. However, some recent moves within and beyond Latin America suggest that this principle is not dead, but on the resurgence. The "Revival of Calvo" phenomenon signals a change of direction in international investment law: neo-liberalism no longer dominates international investment law-making, and a more balanced, and perhaps also a more conservative and nationalistic approach, is gaining ground. This Article explores these recent events and analyzes to …

On The Road To Perdition? The Future Of The European Car Industry And Its Implications For Ec Competition Policy, Sandra Marco Colino

Northwestern Journal of International Law & Business

Recent reports from the European Commission on European Union price differentials for new motor vehicles reflect a steady narrowing of the differences in prices for motor vehicles across the 27 Member States. Although the inclusion within the European Community in 2004 of ten new countries with relatively homogeneous pricing has evidently colored these findings, price differentials among the EU-15 appear to be decreasing. Price convergence has been welcomed by consumer associations and European institutions, which for many years fought arduously to force car manufacturers to reduce these differentials. The justification for their concerns was based on a logical argument. In …

Bilateralism Under The World Trade Organization, Y.S. Lee

Northwestern Journal of International Law & Business

The establishment of the World Trade Organization ("WTO"), which replaced the five decades of the General Agreement on Tariffs and Trade ("GATT") regime,' has significantly reinforced multilateral control over international trade on a global scale. As of October 2005, membership in the WTO has reached 148 nations, including the majority of former Soviet bloc and other communist countries,2 making the WTO the "United Nations of International Trade.",3 WTO disciplines have significant impact on world trade today; they have been enforced by the monitoring activities of various WTO bodies and by strengthened dispute resolution mechanisms. In addition, a significant number of …

Taiwan's Fair Trade Act: Achieving The Right Balance Symposium On Competition Law And Policy In Developing Countries, Pijan Wu, Caroline Thomas

Northwestern Journal of International Law & Business

Adopting competition laws is part-and-parcel of a global trend. Indeed, it is striking to see how many countries first implemented competition laws within the last twenty-five years. In 2000, Frederic Jenny commented that "today between 80 and 100 countries have a competition law or are in the process of adopting one whereas ten years ago no more than 50 countries had such a law." This compares to less than ten countries in 1960. Promulgated by a Presidential Order on February 4, 1991 and coming into force one year thereafter, Taiwan's Fair Trade Act ("FTA") must be interpreted in this context. …

Defragmenting World Trade, Sungjoon Cho

Northwestern Journal of International Law & Business

The global trading community is in a state of deep crisis. Its main system, multilateralism, has recently been clogged by viscous trade barriers created by a proliferation of bilateral, regional trading blocs. Globalization offers a worldwide "production value chain" which enables even small economies to take part in the global commerce by offering raw materials or labor. In fact, small economies hold a comparative advantage at certain stages of the international manufacturing process.1 However, the current pattern of regional trading blocs militates against such participation by erecting new barriers against non-members and thus compartmentalizing the global market.2 This is not …

Islamic Principles Governing International Trade Financing Instruments: A Study Of The Morabaha In English Law, Jason C. T. Chuah

Northwestern Journal of International Law & Business

The past years have seen a clear and incontrovertible rise in the use of international financial and commercial instruments expressed to be governed by Islamic principles. Banks and other commercial entities in Islamic and non-Islamic countries are increasingly aware of the commercial need to offer services which are specifically tailored to meet this sector of the international market. Disputes over the interpretation and application of such instruments invariably arise. English courts are not insulated from such disputes, given that the City of London is at the forefront of many international commercial and financial dealings. As a matter of law, the …

Taxing The International Athlete: Working Toward Free Trade In The Americas Through A Multilateral Tax Treaty, Jeffrey Dunlop

Northwestern Journal of International Law & Business

At first glance, it does not appear that taxation issues facing the international athlete and developing free trade between North and South America are closely related; they represent very different aspects of cross-border transactions and investment. On the other hand, they may be related when viewed as sequential steps in the process toward developing sustained economic relationships. This article will attempt to bridge that gap. First, Part II of this article discusses the current United States approach toward taxation of international athletes. Next, Part III reviews the history and issues facing tax treaty negotiations between the United States and developing …

The $4 Billion Question: An Analysis Of Congressional Responses To The Fsc/Eti Dispute Under Wto Export Subsidy Standards, William Chou

Northwestern Journal of International Law & Business

During the decade-long relationship between the United States and the World Trade Organization (WTO), perhaps no controversy has fomented as long and bitterly as the dispute over the U.S. tax benefits for exporters. This article analyzes two competing bills before the House of Representatives, both devised to bring the United States in compliance with the WTO's ruling against the U.S. Foreign Sale Corporation (FSC) and Exterritorial Income (ETI) tax regimes as prohibited export subsidies. Hit with a $4 billion retaliatory tariff by the European Union, the House sought new tax legislation that would preserve at least some of the tax …

Bilateral Investment Treaties And The Possibility Of A Multilateral Framework On Investment At The Wto: Are Poor Economies Caught In Between, Victor Mosoti

Northwestern Journal of International Law & Business

The increased Foreign Direct Investment ("FDI") flows in the past few years have strengthened the belief among many developing countries, especially African countries, that such FDI flows could help in reducing the resource, technology and foreign exchange gaps that constrain their economic development. As a result, many developing countries have beendiligently working to attract foreign investment, for which these countries give some of the highest returns; in the process, these countries make concessions that they would have found unthinkable in the past, when autarchic economic policies were prevalent. For example, due to the liberalization of capital accounts, a foreign investor …

Meaning, Ambiguity And Legitimacy: Judicial (Re-)Construction Of Nafta Chapter 11, Ari Afilalo

Northwestern Journal of International Law & Business

Chapter 11 of the North American Free Trade Agreement (NAFTA) benignly named the "Investment Chapter," is a theater for some of the most advanced issues of 21st century international law and adjudication. The Chapter gives private parties the right to challenge national policies that burden their ability to do business freely. It empowers arbitral tribunals to assess damages against the governments of NAFTA parties. The adjudicators, as this Article illustrates, render opinions with a constitutional flavor in that they assess the validity of domestic norms against larger principles of international economic law. In a drastic move away from classical century …

A Dual Catastrophe Of Protectionism, Sungjoon Cho

Northwestern Journal of International Law & Business

Suppose that a consortium of wealthy and powerful local industries, acting through lawmakers captured by these industries, managed to pass a statute, damaging to the larger public welfare, purely for a protectionist purpose. Suppose further that this statute victimizes exports from a small, poor country such as Vietnam, to a large, rich country such as the United States, because these imported products are cheaper and thus pose a competitive threat to rival domestic industries. Suppose also that courts in the importing country can do little to stop this chain of events. Rational individuals might find these events objectionable, if not …

General Exclusion Orders Under Section 337, Gary M. Hnath

Northwestern Journal of International Law & Business

Your company, Widgets Unlimited, imports foreign-made widgets into the United States. One day, you're informed that U.S. Customs & Border Protection (Customs) has detained your goods and is determining whether they infringe a patent owned by The American Widget Corporation, based on an exclusion order issued by the International Trade Commission (ITC) after a recent ITC investigation, titled Certain Widgets with Extra Shiny Surfaces. Since you were never a party to any proceeding at the ITC, and indeed, you never even knew American Widget had patents on its widgets, you conclude that there must be some mistake and wait for …

Convergence: Challenges, Controversies And Collaboration, David Van Zandt

Northwestern Journal of International Law & Business

In this Symposium issue, the Northwestern Journal of International Law and Business has brought together seven outstanding commentators on the possibilities, complexities and controversies of convergence.

Injury Investigations In "Material Retardation" Antidumping Cases, Prakash Narayanan

Northwestern Journal of International Law & Business

Despite the criticisms of economists to antidumping measures, they continue to be the most often used trade remedy measure. A new trend that may be observed is the use of the "material retardation" standard of injury to demonstrate injury to domestic industry that is one of the requirements for imposing antidumping duty. It is essential to be wary of this trend as unlike the other two types of injury, the WTO lacks specific guidelines for the use of this standard. The general rules in the Antidumping Agreement are unsuitable for the situations where the material retardation standard is relevant, and …

Test Of Multilateralism In International Trade: U.S. Steel Safeguards, Y.S. Lee

Northwestern Journal of International Law & Business

The highly publicized safeguard measures applied by the United States to an array of steel products in 2002 became one of the biggest and most controversial trade disputes in recent history. Virtually all major trading nations in the world, including the European Community, Japan , China , Brazil , Korea , New Zealand , Switzerland and Norway , were the direct parties to this dispute with the United States . The contentious legal grounds of the U.S. safeguard measures, as well as the lack of adequate consultations between the United States and its trading counterparts, have brought the international community …

The Havana Club Saga: Threatening More Than Just "Cuba Coke", Emily Taylor

Northwestern Journal of International Law & Business

The saga of the "Havana Club" brand began when the family-owned distillery in Cuba that created "Havana Club" rum was confiscated by the Cuban government during the communist revolution. Years later, a dispute arose as to the rightful owner of the U.S. trademark of the name. In an attempt to settle the matter, a U.S. statutory provision was passed that prevents the registration or protection (in the United States) of trademarks linked to businesses that were confiscated by the Cuban government. The statutory provision, § 211 of the Omnibus Appropriations Act of 1998 ("§ 211"), may have been in keeping …

Emerging Wto Competition Jurisprudence And Its Possibilities For Future Development , Alberto Alvarez-Jimenez

Northwestern Journal of International Law & Business

A new competition jurisprudence is emerging within the World Trade Organization ("WTO") and its Dispute Settlement Body ("DSB"). WTO competition jurisprudence comprises all WTO Panel and Appellate Body rulings in cases where what is debated is the existence of a private anti-competitive behavior, the absence of the private competitive conduct that WTO law orders, or certain subject matters that fall within the traditional scope of domestic antitrust legislation, regardless of whether or not the decision provides a WTO solution. Part II of this article presents the WTO self-restraint approach regarding competition and trade before the new millennium, as set out …

Changing Notions Of Sovereignty And Federalism In The International Economic System: A Reassessment Of Wto Regulation Of Federal States And The Regional And Local Governments Within Their Territories, Edward T. Hayes

Northwestern Journal of International Law & Business

International trade liberalization increasingly addresses disciplines which fall within the constitutional competence of regional and local governments. Traditional notions of nation/state sovereignty are evolving to recognize the importance of regional and local actors on the international economic scene. The ongoing evolution of international trade and sovereignty incresasingly places regional and local governments in a unique position to influence world trade, positively and negatively.

This article explores the manner in which the World Trade Organization attempts to regulate regional and local behavior. Specifically, this Article explores the inherent constitutional tension and resulting ambiguities in the WTO's effort to regulate regional and …