International Law Commons^™

A Securities Regulator Looks At Onvergence, Donald T. Nicolaisen

Northwestern Journal of International Law & Business

For many years there has been a dedicated group of practitioners, standard setters, business leaders and others from around the world who have worked to establish a single set of globally accepted accounting standards for the benefit of the capital markets. These people clearly had their hearts in the right place but, absent a binding mandate to apply the standards, it seemed largely a labor of love. Now I expect those pioneering initiatives and the many years of effort to pay off because in 2005 a large number of companies are joining what up to now has been a limited …

Convergence And The Implementation Of A Single Set Of Global Standards: The Real-Life Challenge, Mary Tokar

Northwestern Journal of International Law & Business

This paper addresses the impact of convergence on auditing firms by focusing on the adoption of International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB). While the adoption of the IFRSs by companies around the globe is intended to achieve convergence in accounting by eliminating different national approaches to financial reporting, many challenges arise from the process of adoption of the IFRSs, as well as from the ongoing and still incomplete process of convergence of national standards with the IFRSs.

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 …

Setting A Global Standard: The Case For Accounting Convergence, David Tweedie, Thomas R. Seidenstein

Northwestern Journal of International Law & Business

As capital markets play an increasingly central role in today's modern economies, policy-makers are confronted with the question of how to assure the continued effective functioning of these markets and, in particular, how to develop a sound financial reporting infrastructure. Recent experience suggests that such a reporting infrastructure must be built on accounting standards that are consistent, comprehensive, and based on clear principles to enable financial reports to reflect underlying economic reality.

Chronopost V. Ufex: The Paradoc Of The Competing Monopolist Symposium On European Competition Law , Alessandra Fratini, Andrea Carta

Northwestern Journal of International Law & Business

On July 3, 2003, in the Chronopost judgment, the European Court of Justice ("ECJ" or "the Court") defined the conditions under which a public undertaking, enjoying a legal monopoly for the provision of services of general interest, can provide services to its subsidiaries without infringing Article 87(1) of the EC Treaty. The impact of this judgment on European Community ("EC") state aid policy and public services is potentially large, in both legal and practical terms. The ruling casts light on the real dilemma underlying the application of state aid rules to the circumstances of the case: how to allow public …

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 …

The Costs And Legal Implications Facing Implementation Of The European Union's Droit De Suite Directive In The United Kingdom, Jennifer B. Pfeffer

Northwestern Journal of International Law & Business

In 2001, the European Union passed a directive requiring member countries to implement a droit de suite on the resale of art. A droit de suite is a resale royalty created to benefit visual artists. The purpose of the droit de suite is to allow artists to profit off of their growing reputations; for example, a starving artist who has sold a work for a pittance may profit (or his heirs may profit) when he has risen in prominence and his work has consequently increased in value. The United Kingdom actively opposed the directive;8 it worried about the effect of …

The State Of E.C. Competition Law: Fiften Years Ago And Today, The Symposium On European Competition Law , Frank Fine

Northwestern Journal of International Law & Business

The European Commission is achieving ever greater rationalization and efficiencies in the field of merger control, thereby maximizing commercial benefits while minimizing regulatory hurdles. The Commission appears to be on a completely different track when it comes to non-merger arrangements, such as strategic alliances, distribution agreements, technology licenses, joint selling agreements and joint purchasing agreements. While the Commission is seeking to maximize legal certainty for companies planning concentrations, in the other spheres of business activity which fall within the ambit of Articles 81 and 82, including those noted above, the Commission has decided that the legal certainty afforded by the …

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 …

New E.C. Merger Control Test Under Article 2 Of The Merger Control Regulation, The Symposium On European Competition Law , Alexander Riesenkampff

Northwestern Journal of International Law & Business

On November 25, 2003, the Council reached a political accord on amending the Merger Control Regulation. On January 20, 2003, the Council formally adopted the amendment as new Regulation No.139/2004. Article 2, Sec. 3 of the new regulation provides: "A concentration which would significantly impede effective competition, in the common market or in a substantial part of it, in particular as a result of the creation or strengthening of a dominant position, shall be declared incompatible with the common market." This article begins by outlining the legislative history of the new Article 2. That preface is followed by the identification …

E.U. State Aid Developments In 2003: More Complexity, Less Certainty Symposium On European Competition Law , Dennis Oswell, Esfandiar Vahida

Northwestern Journal of International Law & Business

There was a time when observers had the impression that European companies could think of no better gift from the government than a subsidy of some sort. Scrutiny of such governmental largess at the E.U. level was perceived as lax and any consequences for violating the E.U. competition rules against such handouts were seen as remote and timid. Times have changed. As the European Commission (the "Commission") stiffens its resolve to police and punish unlawful State intervention in the marketplace, governmental subsidies to favored undertakings, broadly referred to in the European Union as "State aid," are fast becoming gifts that …

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 …

Flores V. Southern Peru Copper Corporation: The Second Circuit Fails To Set A Threshold For Corporate Alien Tort Claims Act Liability, Lori Delaney

Northwestern Journal of International Law & Business

The Second and Ninth Circuit Courts have recently heard cases dealing with the application of the Alien Tort Claim Act (ATCA) against private, U.S. based multinational corporations (MNCs), and come to differing conclusions on the standards that should be used in applying this complicated law to suits by foreign nationals against U.S. based MNCs. The issue of private corporate liability under the ATCA was not definitively resolved by the Supreme Court in its recent decision in Sosa v. Alvarez-Machain , and thus the Circuits must continue to grapple with the application of the ATCA to U.S. based MNCs.

The Second …

The Spirit Of Trips And The Importation Of Medicines Made Under Compulsory License After The August 2003 Trips Council Agreement, Jessica J. Fayerman

Northwestern Journal of International Law & Business

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement has changed prospects for access to necessary medications in the developing world. The use of compulsory licensing for pharmaceutical products embodied in Article 31 of TRIPS has been a contentious issue. Prior to 2003, countries with no manufacturing capacity of their own were not allowed to import medicines made under compulsory license, rendering the protections of Article 31 of little use to them. The 2003 Motta Agreement changed this. This expansion of the compulsory licensing power is both an impractical solution and it dilutes the premises upon which TRIPS was originally …

New Ec Merger Regulation: A First Assessment Of Its Practical Impact, The Symposium On European Competition Law , Werner Berg

Northwestern Journal of International Law & Business

In the late evening of November 27, 2003, the Council of Ministers reached a political agreement on the amended text of the European Community Merger Regulation ("ECMR"), which is due to enter into force on May 1, 2004, the date for enlargement of the European Union. In the following article, the New ECMR will be assessed from a practitioner's perspective. Since the new substantive test is being dealt with in another contribution to this Symposium, this analysis focuses on the jurisdictional and procedural issues

The Interpretive Turn In International Sales Law: An Analysis Of Fiften Years Of Cisg Jurisprudence, Larry A. Dimatteo, Lucien Dhooge, Stephanie Greene, Virginia Maurer

Northwestern Journal of International Law & Business

The United Nations Convention on Contracts for the International Sale of Goods ("CISG") was adopted on April 11, 1980, under the auspices of the United Nations Commission on International Trade Law ("UNCITRAL"). The focus of this article is not whether the CISG mandates or should mandate absolute uniformity of application. The literature on this subject is quite extensive.15 Instead, this article recognizes that many CISG provisions are the product of compromise and thus we ask whether these compromises have proven to be effective or have resulted in a chaotic jurisprudence. How have the articles of the CISG actually been interpreted …

Trips' Rebound: An Historical Analysis Of How The Trips Agreement Can Ricochet Back Against The United States, Donald P. Harris

Northwestern Journal of International Law & Business

Recently, scholars and commentators around the world have reexamined the role intellectual property rights (IPRs) play in hindering or helping developing countries. These scholars have questioned the doctrine the IPRs help developing countries by promoting economic development, increasing foreign direct investment, stimulating domestic innovation, and improving access to new technologies, and have concluded that imposing "Western-styled" intellectual property regimes (e.g., the U.S. patent regime) on developing countries harms those countries. In particular, such regimes fail to bring any of the purported benefits, while they impose many costs, including preventing people from obtaining life-saving drugs. This Article argues that it is …

The Innovative German Approach To Consumer Debt Relief: Revolutionary Changes In German Law, And Surprising Lessons For The United States, Jason J. Kilborn

Northwestern Journal of International Law & Business

This Article seeks to achieve two goals as it describes the consumer provisions of the new German Insolvency Act. First, it reveals critical distinctions between the theory of consumer insolvency, as described in German law and legal literature, and the reality of consumer insolvency in practice, as it has developed in the four-and-a-half years since the law went into effect. From both theoretical and practical perspectives, the German experience both supports and challenges many of the notions underlying consumer bankruptcy reform debates in the United States. As it turns out, the German and U.S. consumer debt relief systems produce largely …

Current Issues Of E.U. Competition Law: The New Competition Enforcement Regime, The Symposium On European Competition Law , Philip Lowe

Northwestern Journal of International Law & Business

On May 1, 2004, two major reforms of the EC competition enforcement regime are expected to enter into force: the modernization of antitrust enforcement, based on Regulation 1/2003,1 and the review of the European merger control system. In this contribution, I will outline the main principles underlying these reforms. In Part I, I will focus on the instruments the Commission intends to adopt early in 2004 in order to guarantee the efficient functioning of Regulation 1/2003, the so-called modernization package. Subsequently, in Part II, I will present the guiding principles of the future merger control in Europe, as they result …

E.U. Competition And Private Actions For Damages, The Symposium On European Competition Law , Georg Berrisch, Eve Jordan, Rocio Salvador Roldan

Northwestern Journal of International Law & Business

There are numerous reasons why private enforcement of E.U. competition law remains underdeveloped in Europe. The main reason is perhaps that it is not regulated by E.U. law but by Member State law. This in itself creates legal uncertainty. A system that creates optimal conditions for individuals to challenge infringements of competition rules before national courts ensures a high level of compliance. It is therefore no surprise that the European Commission ("Commission") is keen to see the general use of private enforcement, and in particular of actions for damages, in Europe increase. This paper focuses on one particular aspect of …

Last Of Its Kind: The Review Of The Technology Transfer Block Exemption Regulation, The Symposium On European Competition Law , Fiona Carlin, Stephanie Pautke

Northwestern Journal of International Law & Business

On October 1, 2003, the Commission published a formal proposal for a new technology transfer block exemption ("Draft TTBE") together with detailed draft guidelines ("Draft Guidelines")5 which explain how the new regulation will be interpreted and how Article 81 will be applied to agreements that fall outside the revised regulation's safe harbor. These proposals unleashed a barrage of criticism from industry and seem likely to result in some amendments to the proposed texts before their adoption in March or April 2004. The new package is due to enter into force on May 1, 2004. This article discusses the Commission's proposals …

Combinations, Concerted Practices And Cartels: Adopting The Concept Of Conspiracy In European Community Competition Law Symposium On European Competition Law , Julian M. Joshua, Sarah Jordan

Northwestern Journal of International Law & Business

This article charts the progress of, and the vicissitudes faced by, the incorporation into the European Community legal order of the peculiarly common law concept of conspiracy as the vehicle not only for analytical purposes, by characterizing full-blown cartels as "agreements" in the sense of Article 81 of the EC Treaty, but also to resolve the multiplicity of evidential issues presented by complex, pernicious and secretive behavior. The article also shows how the uncovering of deliberate and secretive business delinquency, practiced at the highest levels in some of Europe's most respected corporations and summed up by the negative connotations of …

Role Of Judicial Review In Merger Control, The Symposium On European Competition Law , Mark Clough

Northwestern Journal of International Law & Business

This article explains the role of judicial review in European Community ("EC") Merger Control ("ECMR") by reference to the Airtours case and three other important recent judgments of the European Court of First Instance ("CFI") (Schneider, Tetra Laval and Lagardére), all decided in 2002. Article 230 of the EC Treaty, which governs actions for annulment of acts adopted by the EC Institutions "on the grounds of lack of competence, infringement of an essential procedural requirement, infringement of this [EC] Treaty or of any rule of law relating to its application, or misuse of powers," is considered only in the context …

A Road Map For Corporate Governance In East Asia, Chee Keong Low

Northwestern Journal of International Law & Business

Much has transpired since the inadequacies of corporate governance practices in East Asia were glaringly exposed by the Asian financial crisis. The crisis brought to the foreground numerous deficiencies, which had common roots in excessive over-leverage as well as the lack of transparency, disclosure and accountability. These issues have been explicitly recognized with the release of the White Paper on Corporate Governance in Asia by the Asian Roundtable on Corporate Governance in June 2003.

By responding in part to the White Paper, this article sets out a "roadmap" whose ultimate objective is the enhancement of the practice of corporate governance …

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 …

European Community Compulsory Licensing Policy: Heresy Versus Commen Sense Symposium On European Competition Law , Frank Fine

Northwestern Journal of International Law & Business

There is a growing trend to limit the rights of intellectual property owners when the public interest warrants. Until very recently, this phenomenon has been manifested only at a transnational level.1 For example, the World Trade Organization, as recently as November 2001, in its Doha Agreement ("Doha"),2 enabled certain nations of the Asian and African subcontinents to obtain compulsory licenses to manufacture and distribute domestically certain anti-retroviral drugs by declaring a state of national health emergency. Doha raises an intriguing question: if limited intrusions into valuable intellectual property rights may be justified on public health grounds, should not such intrusions …

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 …

"Open Skies" At A Crossroads: How The United States And European Union Should Use The Ecj Transport Cases To Reconstruct The Transatlantic Aviation Regime, Jacob A. Warden

Northwestern Journal of International Law & Business

Since the creation of the modern international aviation regime, at the 1944 Chicago Conference, the United States has used this power and prestige to create a system much to its liking. However, the recent decision of the Court of Justice of the European Communities ("ECJ") in the Transport Cases threatens to change this. The Transport Cases, brought by the European Commission ("Commission") in an attempt to achieve exclusive authority to negotiate commercial aviation agreements for the collective European Union, partially struck down several bilateral aviation treaties signed between several of the Member States and the United States. The Commission, recognizing …

The Disappearance Of The Ultra Vires Doctrine In Greater China: Harmonized Legislative Action Or (Simply) An Accident Of History, Lutz-Christian Wolff

Northwestern Journal of International Law & Business

In the context of company law, the term "ultra vires" is normally used to describe acts that are beyond the scope of the powers of a corporation. Rules concerning ultra vires acts of companies have changed in recent years in mainland China, Taiwan and the Hong Kong Special Administrative Region ("Hong Kong"). It appears that in all of these parts of Greater China, the legal frameworks are now rather similar to each other and seem to resemble the rules that are applied in the Macau Special Administrative Region ("Macau"). This, of course, provokes questions: what are the reasons for these …

The European Union's Efforts To Sidestep The Wto Through Its Ban On Gmos: A Response To Sarah Lively's Paper, "The Abcs And Ntbs Of Gmos", Johannes S.A. Iii Claus

Northwestern Journal of International Law & Business

The purpose of this paper is to refute Ms. Sarah Lively's article, the ABCs and NTBS of GMOs, detailing the reasons why the E.U. legislation is not in harmony with the WTO agreements. This paper will argue that if a WTO dispute settlement body were to decide upon the validity of the current European GMO regime, it would strike down the regulation as contrary to the WTO agreements signed by the European Union and the United States. The European Union's four year moratorium on GMOs continues to be one of the most hotly-contested trade issues facing it and the United …