Pre

• how to settle International disputes

• practical knowledge of Commercial Arbitration

Pre
• anti-Dumping rules and regulations

• different stages in PLC in International Market

• the Environmental influences on Pricing decision

2
 –
• fundamentals of The Contract Act 1872 & essentials to contract

• Constitutional aspects to study fundamentals of structure & financial aspects

of companies

• concepts associated with company

Preformation and operations
• regulation of Foreign Exchange transactions and markets

• fundamentals of foreign investments and taxation of foreign income

• the World Trade Organization & its role in financial management

• various regional groupings & technical standards of international finance

• various international legal trade restrictions.

3
 –
Noted Jurist Thomas mentioned that ‘Law is King’ because the Law of the
land is supreme and at the same time, it is mentioned that ‘Law is King of
Kings’, which means that ‘Nobody is above the Law’ because the King and
the Common Man are considered the same by the law of the land.

Indira Nehru Gandhi vs Shri Raj Narain

Lalu Prasad Yadav in CBI court for fodder scam
Nawaz Sharif in Panamagate case Pre

4
 –
• Law is important for a society because it serves as a norm of
conduct for citizens.

• Law is important because it acts as a guideline as to what is

accepted in society.

• Without Law, there wouldPrebe conflicts between social groups

and communities. It is pivotal that we follow them.

5
 –
• Law effectively governs trade between businesses and consumers.
• It creates a regulated system that is fair for both parties so that trade
can be conducted in a reasonable manner.
• Law serves as a way to maintain order among businesses, brands,
and companies alike.
• They protect the rights of the company, and of the people who work
there, as well as help to establish a certain standard for how things
Pre
should be run.

6
• It refers to those rules of public international law which
directly concern trade and economic exchanges between the
subjects of international law.

Presubjects of international law are,

• Peaceful relations between
to a very large extent, directly concerned with economic
exchanges.

• Based on this aspect, international economic law thus covers

only a part, albeit an important one of the discipline of public
international law as a whole.

7
 –
• Professor Georg Schwarzenberger defined international trade
law as ‘a branch of public international law that
encompassed such matters as the ownership and exploitation
of natural resources, the production and distribution of
goods, invisible economic or financial transactions and
currency and finance’.
Pre
• Austrian jurist Professor Ignaz Seidl-Hohenveldern defined
international economic law as “those rules of public
international law which directly concern economic
exchanges between the subjects of international law.

• Ignaz also tried to come to terms with the fact that economic
exchanges involve not only states, but also “multinational
enterprises”, or arrangements between states and nationals of
other states. 8
It refers to those rules of public international law which directly concern
trade.
–
International Trade Law includes monetary law, competition / anti-trust law,
intellectual property and law and development. It embraces alternative
perspectives, such as Third World and feminist critique and interdisciplinary
approaches and concerns itself with the distribution of wealth and justice and
with preservation of culture, the environment
Pre and peace.

Mutual Fund investments are subject to

market risks, read all scheme related
documents carefully.
The NAVs of the schemes may go up
or down depending upon the factors
and forces affecting the securities
market including the fluctuations in the
interest rates.

Read all legal

documents very carefully. 9
Pre

10
 Continuous war between US and USSR from 1947 until 1991.

Glasnost and Perestroika is related to the

disintegration of the USSR, into 15 independent nations, in 1991.
During the P V Narasimha Rao Government
in India, liberalisation took place which lead to several changes in the way
trade was carried out with other nations.
General Agreement on Tariffs and Trade,
Most-Favoured Nation as India hasPreMFN status with all SAARC countries
except Pak and India considers MFN for all SAARC countries except Pak.
India refused to import palm oil but
later mended ties with Malaysia with re-worked tariffs and got it back on
track
Import of crude oil and LNG
from Iran and Qatar on our own terms
Car manufacturing companies, either in collaboration, or importing

Gadgets being imported or assembled

11
Pre

12
 Bangladesh is India’s largest trading partner in the sub-
continent with the total bilateral trade between the two nations standing at
$9.5 billion in 2019-20, down compared to the previous fiscal, having crossed
$10 billion.
http://www.mea.gov.in/Portal/LegalTreatiesDoc/BG15B2412.pdf

Pre

13
 Bangladesh is India’s biggest trade and development partner
in South Asia.
Currently, India is supplying 1160 MW of power through the two existing
interconnections at Baharampur (West Bengal) - Bheramara (Bangladesh) and
Surajmaninagar (Tripura) – Comilla (Bangladesh).
The two countries jointly inaugurated a project to import Bulk LPG from
Bangladesh in Oct 2019. This project ensures a sustained affordable supply of
LPG to NE region of India, supplied from Chattogram through Bangladeshi
trucks to Tripura. Pre
India’s exports to Bangladesh account for more than 85 percent of the total
bilateral trade. Some of the major commodities exported to Bangladesh
include cotton, electrical machinery, vehicles, iron and steel, plastic and
related articles etc. While major imports to India include apparels and
clothing, textile fabrics, paper yarn/woven fabrics of paper yarn,
animal/vegetable fats and oils, fish etc.
Bangladesh is India’s biggest development partner, with New Delhi extending
3 Lines of Credits (LOC) to Dhaka in the last 8 years amounting to $8 billion
for development of infrastructure in sectors including roads, railways,
shipping and ports. 14
 In 2018-19, Nepal’s exports to India stood at US$ 508 mn, India’s
exports to Nepal were US$ 7.76 bn.
Nepal’s main imports from India are petroleum products, motor vehicles and
spare parts, rice & paddy, machinery & parts, medicine, hot-rolled sheet in
coil, electrical equipment, cement, agricultural equipment & parts, coal,
wires, rods, coils, bars, vegetables, cold rolled sheet in coil, thread, etc.
https://mea.gov.in/Portal/ForeignRelation/India-Nepal_Bilateral_Brief_Feb_2020.pdf

Pre

15
 India is one of Sri Lanka’s top trading partners, with significant
potential for deeper economic integration. The country’s growing middle class
and increasing levels of disposable income among its populace make it a vital
market for a wide range of goods and services and provide increasing
opportunities for Sri Lankan merchandise exports of tea, coffee, apparel, and
services exports such as tourism.
https://lki.lk/publication/sri-lanka-india-relations-opportunities-for-a-new-connectivity-
strategy/

Pre

16
 Bilateral trade between these two countries have always
been on the rise and for the fiscal year 2007-08/ the estimated trade was about
$358 million according to the Council on Foreign Relations. Over four
thousand labourers and security personnel from India were given employment
in various developmental activities in 2008. A syndicate of seven companies
that are part of the Steel Authority of India Limited (SAIL) secured a $10.3
billion deal to mine in three iron ores in the central part of the country.
https://nickledanddimed.com/2015/12/10/india-afghanistan-a-tie-from-the-past/

Pre

17
 The year 2020 marked the 42nd anniversary of India-Vietnam
bilateral trade. Vietnam and India have shared strong bilateral relations
historically, and for the past two decades, trade between the two countries has
risen considerably. These economic ties have materialized into several Indian
investments in Vietnam in various sectors.
Over the past two decades, bilateral trade between Vietnam and India has
steadily grown from US$200 million in 2000 to US$12.3 billion in the
financial year 2019-2020.
Pre
https://www.vietnam-briefing.com/news/vietnam-india-increasing-trade-investment-
relations.html/

18
 Bilateral trade between India and Mongolia has expanded
drastically in recent years.
India becomes the first country outside the Soviet bloc to establish diplomatic
relations with Mongolia seeing that then, there had been treaties of mutual
friendship and cooperation between two countries in 1973, 1994, 2001 &
2004.
https://www.mea.gov.in/Portal/ForeignRelation/India_Mongolia_2020.pdf
https://pdfs.semanticscholar.org/cb7f/59ecf29487ce072b7327b0f84df95a40a219.pdf
Pre

19
• There is enormous scope for debate about the economic activity of
buying and selling where the transaction crosses a border.

• A simple model of international trade is a cross-border sale of

goods. A seller in one state (State A) sells goods to a buyer in
another state (State B). The goods are shipped from A to B and
money to pay for the goods Pre
is transferred from B to A.

• This exchange is, in essence, no different from a sale of goods

from one individual to another taking place solely within one state
alone. It constitutes international trade only because the transaction
involves the transfer of something of value across a border.

• This subject is concerned with the movement of goods, services,

capital, and in some circumstances, labour, across borders.

20
• International trade law, then, is about the impact of borders and of nation
States on economic exchanges. If borders did not exist, the activity of
buying and selling would nevertheless still go on.
• International trade law is about getting rid of the impediments to
economic exchange that borders and nation States impose.
• The regulation of international Pre
trade is concerned with limits on the ability
of states to interfere with the cross-border exchanges.
• In other words, the starting assumption of modern international regulation
of trade is that border and other barriers to cross-border economic
exchanges must be limited if not eliminated.
• Harmonized System (HS) Codes are commonly used throughout the
export process for goods. The Harmonized System is a standardized
numerical method of classifying traded products. It is used by customs
authorities around the world to identify products when assessing duties
and taxes and for gathering statistics.
21
• International trade law is concerned with removing the impediments
(hindrance or obstruction in doing something) that sovereignty places in
the way of trading across borders in one sense, international trade law is
about the irrelevance of the sovereignty of States.

• The General Agreement on Tariffs and Trade (GATT) is a legal

agreement between many countries, whose overall purpose was to
promote international trade by Pre
reducing or eliminating trade barriers such
as tariffs or quotas.

• According to its preamble, its purpose was the “substantial reduction of

tariffs and other trade barriers and the elimination of preferences, on a
reciprocal and mutually advantageous basis.”

• The GATT was first discussed during the United Nations Conference on
Trade and Employment and was the outcome of the failure of negotiating
governments to create the International Trade Organization (ITO). It was
signed by 23 nations in Geneva on October 30th, 1947, and was applied on
a provisional basis January 1st, 1948. 22
• The Cold War, disintegration of the Soviet Union and the more recent
advances made by China in the trading internationally, have prompted for
the dire need for more international laws to improve trade globally.

• The World Trade Organization (WTO) is an intergovernmental

organization that regulates and facilitates international trade between
nations.
Pre
• Governments use the organization to establish, revise, and enforce the
rules that govern international trade.

• It officially commenced operations on 1 January 1995, pursuant to the

1994 Marrakesh Agreement, thus replacing the General Agreement on
Tariffs and Trade (GATT) that had been established in 1948.

• A recent example of amending international trade laws comes about with

Brexit which has changed equations between Great Britain that was part
of the European Union earlier.
23
• The WTO is the world's largest international economic organization, with
164 member states representing over 96% of global trade and global GDP.

• The WTO facilitates trade in goods, services and intellectual property

among participating countries by providing a framework for
negotiating trade agreements, which usually aim to reduce or
eliminate tariffs, quotas, and other restrictions; these agreements are
Pre
signed by representatives of member governments and ratified by their
legislatures.

• The WTO also administers independent dispute resolution for enforcing

participants' adherence to trade agreements and resolving trade-related
disputes.

• The organization prohibits discrimination between trading partners, but

provides exceptions for environmental protection, national security, and
other important goals

24
• The term “national economy” involved capital and labour that was used
within each State or society to exploit primary resources and to
manufacture goods. The resulting products were sold within the markets
of the State or available for export.

• Resources or goods from other States were imported for direct sale or
utilized in manufacturing. This image of “national economies” implies the
Pre
existence of independent, self-contained economic systems that intersect
at the point at which their nationals trade with each other.

• This is a common image of economies of states, and the “international

economy” is seen as the aggregation of these national economies.

• Foreign exchange transactions encompass investment and speculation as

well as financing of trade in goods. Further, manufacturing is no longer a
domestic process. Liberalization resulted in movement of capital and
manufacturers are able to move to where they can produce most
efficiently, taking advantage of economies of scale, labour costs, and the
use of technology. 25
• Substantial reduction in transportation and communications costs and
advances in technology have facilitated this. Therefore, products are
assembled from components that may be manufactured in a variety of
countries, so that the end-product exported may be put together from
services and components derived from several other countries.

• Thus, what might appear to be a domestic manufacturing process,

designed to produce goods Pre for domestic consumption, is in fact, a
complicated international transaction.

• It can be seen that there has been an internationalisation of production, of

investment and of distribution systems; with the result that economic
activity in one State which contributes to that State’s domestic economy is
inextricably linked with economic activities in other States, each
contributing to the domestic economies of those States.

• Thus, the domestic economies of the States themselves are inextricably

linked. This is what is often popularly referred to as “globalization”.”.
26
• Market economies, which in their various manifestations, have become
the predominant economic systems in States, are demonstrating the
international trade characteristics throughout the world.

• The scope of international economic law is very wide and the regulation
of international trade is concerned with limits on the ability of States to
interfere with the cross-border exchanges.
Pre
• Further, international trade law has been seen as marginal to the field of
international law. A “peace and security” starting point for international
law ignores the reality of the post-Cold War era where, for many States,
economic welfare is a more fundamental concern than is fear of
aggression from other States.

• A “peace and security” situation for international law also ignores the
fundamentally different economic reality of a globalised and globalising
economy.

27
• There are around 420 regional trade agreements already in force around
the world, according to the World Trade Organization. Although not all
are free trade agreements (FTAs), they still shape global trade as we know
it.

Pre

28
• India is involved in a number of trade disputes at the WTO

• US has challenged India’s export subsidy schemes like MEIS

(Merchandise Exports from India Scheme), citing that the country has
crossed the US$ 1,000 GNI (Gross National Income) threshold for the
third successive year and can no longer provide such subsidies

• Presugar, fisheries and solar panels as well

India’s subsidies for sectors like
as import duties for sectors like electronics, iron and steel have been
challenged by other countries at the forum

• The SCM (Subsidies and Countervailing Measures) Agreement contains a

definition of the term “subsidy”: a financial contribution by a government
or any public body within the territory of a member which confers a
benefit

• If India considers subsidy for imported products, then it can affect

domestic products while it is requests subsidy for its exported products,
other countries will approach WTO for dispute resolution 29
• The US has also challenged India’s retaliatory tariffs (tariffs imposed as a
means of coercing a foreign government and intended to compel the grant
of reciprocity privileges) on 28 products

• To negate the effect of subsidies, Government can impose certain duties

like Countervailing Duty (levied on imported goods to counterbalance
subsidies provided by the exporter country) and Anti-dumping Duty (a
Pre government imposes on foreign imports
protectionist tariff that a domestic
that it believes are priced below fair market value, to reduce the
international competition of domestic companies producing similar goods)

• In Jan 2019, India imposed anti-dumping duties on 99 Chinese products

(chemicals & petrochemicals, pharmaceuticals, fibres & yarn, rubber &
steel items). In Apr 19, it imposed anti-dumping duty on solar cell
components from China, Malaysia, Saudi Arabia & Thailand

• All the above measures, if implemented by a certain country, could be

challenged by other countries, in the ‘dispute resolution body’ of WTO
and therefore, this becomes an important role of WTO 30
(i) Tariff treatment on certain goods (India v/s Japan, EU)

(ii) Measures concerning sugar & sugarcane (India v/s Guatemala, Brazil,
Australia)

(iii) Export Related Measures (India v/s US)

(iv) Measures related to solar cells Pre

& solar modules (India v/s US)

(v) Measures on Imports of Iron and Steel Products (India v/s Japan)

(vi) Measures on Steel and Aluminium Products (India v/s US)

(vii) Measures Relating to the Renewable Energy Sector

Link to cases of several countries at WTO:

https://www.tpci.in/research_report/major-disputes-involving-india-at-the-wto/
https://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm
31
• Some of the organizations Free Trade Agreements (FTAs):

- The North American Free Trade Agreement (NAFTA)

- Trans-Pacific Partnership (TPP)

- Transatlantic Trade and Investment Partnership (TTIP)

Pre
- The North American Free Trade Agreement (NAFTA)

- Association of Southeast Asian Nations Free Trade Area (AFTA)

- Southern Common Market (MERCOSUR)

- Common Market of Eastern and Southern Africa (COMESA)

- European Union
- \

- European Economic Community (EEC)

32
• International trade and investment are vital drivers of economic growth.
With the size and shape of the world economy changing dramatically in
recent years, traditional patterns of trading and investing have had to
rapidly evolve alongside it.

• The challenge is to ensure that the regulatory framework keeps up.

Pre in the way we do business. The growth

• There have been so many changes
of the digital economy, the rise of the service sector and the spread of
international production networks have all been game-changers for
international trade.

• As well as this, foreign direct investment has become a key element of

trade between different countries.

• Rather than simply trading with international partners, more and more
companies are buying controlling stakes in foreign enterprises.

33
Pre

34