Chapter 2 Terminology Flashcards
Supranational Legal Framework of Trade
Norms and rules of international law and multinational treaties or agreements (United Nations, European Union, etc.)
Examples of National regulations
External Trade Law, Customs Law, etc.
Lex Mercatoria
national and multinational regulations allowing
valid cross border legal transactions and their enforcement (International private law and law of sales contracts, mediation and international arbitration and regulations about cross-border enforcement of sentences)
Delegated Acts
Commission prepares nonlegislative act that
amends or supplements a Directive / Regulation
Implementing Acts
Commission prepares act in accordance with
Regulation on control by Member States of Commission’s powers
Intergovernmental Organizations (IGO)
Primarily composed of sovereign state (referred to as member states) or other IGOs. IGOs are established by a treaty that acts as a charter creating the group. Treaties are formed when lawful representatives (governments) of several states go through a ratification process, providing the IGO with an
international legal personality. (e.g. United Nations)
Nongovernmental Organizations (NGO)
Any voluntary citizens’ group which is organized on a local, national or international level. It may include clubs and associations. They are subject to national laws and practices, so four forms may be found worldwide:
− Unincorporated and voluntary association
− Trusts, charities, and foundations
− Not-for-profit companies
− Entities formed (or registered) under special NGO or nonprofit laws
Regional Trade Agreements
a treaty that is signed by two or more countries to encourage free movement of goods and services across the borders of its members. The agreement comes with internal rules that member countries follow among themselves. When dealing with non-member countries, there are external rules in place that the members adhere to.
WTO Membership (economic integration)
Most Favored Nation (MFN) principle and
maximum tariff level for export and imports
for trade flows within WTO.
Free Trade Area (economic integration)
Concerns a wide range of countries that have
established free trade agreements involving
several partners. The most salient are USMCA
(formerly NAFTA) and ASEAN. No tariffs between members, no external tariff vis-à-vis others and every member is free to negotiate other trade agreements.
Customs Union (economic integration)
Concerns countries that have opted for a free
trade agreement as well as adopting common
tariffs for external trade. Mercosur is the most
salient example or customs unions between
EU and Turkey, Switzerland and Liechtenstein. No tariffs, no border checks, common external tariff and
trade agreements closed for all members.
Common Market (economic integration)
Concerns countries that have a customs union in addition to the freedom of movement of the factors of production (capital and labor). An example is European Free Trade Association (EFTA), the European Economic Area (EEC)or the Eurasian Economic Union (EAEU). No tariffs, common external tariff, freedom of movement,
goods and people, and common rules and regulations
Economic Union (economic integration)
Further political integration. Mostly relate to
countries that are part of the European Union,
but have kept the use of their own currencies.
Monetary Union (economic integration)
Concern countries that have a common currency. One example is the Eurozone.
Exclusive Competence (Economic Union - The EU Lisbon Treaty)
Making directives and concluding international agreements when provided for in a EU legislative act.
