International Trade Law Commons^™

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 …

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 …

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 …

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 …

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 …

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 …

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 …

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.

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 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 …

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 …

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 …

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 …

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 …

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 …

Implementation Of The Wto Agreements: Framework And Reform, Xin Zhang

Northwestern Journal of International Law & Business

The term 'implementation' has two meanings in the WTO context. The general meaning refers to all the modalities, mechanisms, and instruments that assist in the application of the WTO Agreements. A more recent meaning, highlighted by the Doha Development Agenda, addresses the 'implementation-related issues and concerns' such as those "raised by many developing-country Members regarding the implementation of some WTO Agreements and Decisions, including the difficulties and resource constraints that have been encountered in the implementation of obligations in various areas." In this regard, the WTO implementation issue refers to the abilities of developing-country Members to implement the existing WTO …

Express Delivery And The Postal Sector In The Context Of Public Secto Anti-Competitive Practices, D. Daniel Sokol

Northwestern Journal of International Law & Business

International trade plays an increasingly important role in global economics. One growing part of the international economy has been express delivery services. Because various governments that maintain public sector postal monopolies have erected barriers to entry to impede its growth, express delivery has become an important battleground within the realm of trade. International trade, which initially consisted mainly of the trade of goods, is now increasingly focusing on services. This article focuses on the problem of a particular type of service and the barriers on this service (express delivery) that countries place upon it. Not surprisingly, those countries that are …

Should China Provide Intellectual Property Protection For Genetically Modified Animals?, Ke Geng

Northwestern Journal of International Law & Business

The advent of recombinant genetic engineering techniques has revolutionized biotechnology. The biomedicine and biotechnology industries have extensively employed these techniques to improve the quality of agricultural crops and livestock and to create genetically modified organisms ("GMOs") in order to produce drugs. Since as much as twenty-five percent of the world's intellectual property-related trade involves biotechnology, many countries have realized the importance of providing intellectual property protection for biotechnological technologies, including GMOs. In the past decade, China's booming economy has helped make its biotechnological market the fastest growing market in the world. To stimulate innovation and attract private investment in its …

Recovering Attorneys' Fees As Damages Under The U.N. Sales Convention (Cisg): The Role Of Case Law In The New International Commercial Practice, With Comments On Zapata Hermanos V. Hearthside Baking, Harry M. Fletcher

Northwestern Journal of International Law & Business

The conclusion I ultimately draw is that, although the holdings of individual cases are ambiguous, as a group the relevant foreign decisions clearly sanction an award of CISG damages to cover attorneys' fees that would not normally be compensable under U.S. national law. As I discuss in Part III of the article, the firmly-established "American rule" on recovery of attorneys' fees is that, in the absence of a statutory or contractual provision to the contrary, each party to a dispute must bear his or her own attorneys' fees. A line of U.S. cases construing Article 2 of the U.C.C. strongly …

Judicial Activism At The World Trade Organizational: Development Principles Of Self-Restraint, J. Patrick Kelly

Northwestern Journal of International Law & Business

In a number of recent decisions the AB has begun to grapple in a non-systematic way with both the incorporation and creative interpretation issues.14 These decisions raise serious concerns that the AB is exceeding its authority under the DSU and inappropriately incorporating non-WTO law or interpreting WTO agreements in a manner that diminishes the rights of members. This article explores both the incorporation and creative interpretation questions by assessing the relative merits of three different models of how social regulatory policy might be integrated into WTO decision-making: the Judicial Activist Model, the Contract Model, and the Legislative Model.

Knowledge, Legitimacy, Efficiency And The Institutionalization Of Dispute Settlement Procedures At The World Trade Organization And The World Intellectual Property Organization, Michael P. Ryan

Northwestern Journal of International Law & Business

International legal research regarding international economic dispute settlement tends to be a-theoretical. A theoretically-grounded analytic framework is employed in this article which draws from scholarship from political science, sociology, and economics regarding institutions and international governmental organizations. The knowledge-legitimacy-efficiency analytic framework is applied in this article to studies of General Agreement on Tariffs and Trade (GA TT)/World Trade Organization (WTO) dispute settlement in order to relate this relevant scholarship to the economic field under primary study, Internet domain names. GA TT/WTO knowledge regarding international trade law has thickened through multi-lateral trade negotiations and dispute settlement decisions. The WTO's legitimacy is …

Levi Strauss V. Tesco And E.U. Trademark Exhaustion: A Proposal For Change, Kimberly Reed

Northwestern Journal of International Law & Business

When the European Court of Justice ("ECJ") issued its final decision in the case of Levi Strauss & Co. v. Tesco Stores Ltd. in November 2001, affirming Levi Strauss' right to keep cut-price imported Levis out of the European Union ("E.U."), the general public was outraged at the perceived blow to consumer rights. The ECJ's decision to allow Levi Strauss to prohibit "gray market" imports of its jeans from the United States for resale in the United Kingdom at prices much cheaper than Levi Strauss' own U.K. prices was characterized as protecting "big business" at the expense of consumers. While …

Internet Jurisdiction Today, Adria Allen

Northwestern Journal of International Law & Business

This paper will use the Yahoo case to illustrate the unique jurisdictional dilemma posed by the Internet as countries try to enforce their laws in an era when laws may be broken, through the use of the Internet, from other countries with conflicting laws.' Part I of this paper will address the Yahoo case and its importance to Internet jurisdiction. Part II will explore traditional jurisdiction and apply it to the Yahoo case. Part III will identify twopotential theories of Internet jurisdiction and investigate whether they are feasible solutions to the problem posed by the Yahoo case. Part IV will …

The Proposed E.U. Vat On Electronically Transmitted Services: Enforcement And Compliance Issues, Thomas Fawkes

Northwestern Journal of International Law & Business

This paper will begin by discussing the current VAT system in the E.U. It will also describe in detail the provisions of the proposed VAT amendments as they affect electronic commerce transactions with respect to both B2B and B2C transactions. Next, the practical effects of the VAT amendments in terms of increased VAT revenue for the E.U. and its mem-ber states will be discussed. Following will be a discussion on the past and present failures of the E.U. and its Member States in encouraging and en-forcing compliance under the current VAT Directive, and the implication of such failures on the …

International Governance Through Trade Agreements: Patent Protection For Essential Medicines, Judy Rein

Northwestern Journal of International Law & Business

This paper examines the current conflicts surrounding the implementation of patent protection for pharmaceuticals. Part II outlines the specifics of trade agreements shaping the global intellectual property regime and the consequences for governments seeking to devise an essential drugs policy. Part III analyzes the process of obtaining consensus and compliance with patent protection rules through the negotiation and implementation of trade agreements, and the utilization of dispute settlement mechanisms. This section also examines the aggressive application of unilateral measures to induce adherence to levels of protection beyond those established at the multilateral and regional level. Part IV considers alternative approaches …

Switzerland & The International Trade In Art & Antiquities, Michele Kunitz

Northwestern Journal of International Law & Business

Recently, Switzerland has proposed a law that would significantly tighten its regulation of the antiquities trade. The draft law seeks to comport Swiss law with the broad goals of international conventions on the protection and transfer of cultural property. However, given Switzerland's past reluctance to curtail the illicit trade in antiquities, it remains unclear whether this measure will pass or if passed, whether the law would be adequately enforced. The primary aim of this Comment is to detail the history of international law as it pertains to cultural property and draw attention to the Swiss role in fostering the illicit …

Consequences Of E.U. Airline Deregulation In The Context Of The Global Aviation Market, Moritz Ferdinand Scharpenseel

Northwestern Journal of International Law & Business

The objective of this article is to show the background of the airline liberalization process in the E.U. and to evaluate its economic effects in context of the global aviation market. To understand the pressures for change and the forms that the changes are taking, it is first necessary to ap-preciate why market regulation was thought important and how the U.S. de-regulated its airline industry. Therefore, Section II of this paper will analyze the different market structures in the U.S. and the E.U. In Section III, the discussion will continue with a consideration of the effects of U.S. airline deregulation. …

Foreward: Mergers, Market Access And The Millennium, Eleanor M. Fox

Northwestern Journal of International Law & Business

The symposium issue is a nice microcosm of the competition law issues facing the world. It presents the tensions between national control and world integration. It presents the twin, conflicting impulses to eschew internationalization, hoping to do well enough by deepened positive comity (Waller), and to embrace internationalization at least cautiously to address concerns where unharnessed operation of national interests obstructs efficient solutions and where internationalization is most likely to sidestep the political landmines (Fiebig).