lecture 8 - IEL Flashcards
(16 cards)
What is international economic law?
A very broad field of law governing economic relations between states
Includes areas such as international trade law, investment law, financial law, competition law, procurement law, and tax law.
What are the main actors in international economic law?
- International Monetary Fund
- World Bank
- World Trade Organization
The WTO is an umbrella organization for GATT, GATS, TRIPS, and the dispute settlement unit (DSU).
What is the primary rationale for international trade law?
To promote free international trade among states
This includes security, economic, and geo-economic rationales.
What is the security rationale in international trade?
Trade prevents states from going to war
This is a paradox where both trade preventing war and causing war can be true.
What does the economic rationale suggest about trade?
Trade can benefit both countries involved
Adam Smith and David Ricardo demonstrated that trade is not a zero-sum gain.
What is the geo-economic rationale?
States use trade as a tool to pursue geopolitical goals
An example is China imposing trade restrictions on Lithuania.
What does GATT stand for?
General Agreement on Tariffs and Trade
GATT deals primarily with trade in goods.
What does GATS stand for?
General Agreement on Trade in Services
GATS deals primarily with trade in services.
What are the four modes of supply under GATS?
- Cross-border trade
- Consumption abroad
- Commercial presence
- Presence of natural persons
Each mode defines how services can be supplied across borders.
What is a key feature of the GATS regarding commitments?
Certain provisions only apply when members have undertaken specific commitments
Commitments can be unbound, none, or partial.
What does the term ‘unbound’ mean in the context of GATS commitments?
No commitments undertaken, allowing freedom to adopt any measures
An example is when a country is not bound by GATS provisions.
What is the Most Favored Nation (MFN) principle in GATS?
A non-discrimination principle requiring equal treatment among trading partners
If one country receives a benefit, all others must receive the same benefit.
What does Article XVI of GATS address?
Market access provisions and prohibits certain quantitative and qualitative measures
It ensures that members cannot restrict access once commitments are made.
What is the difference between Article II (MFN) and Article XVII (national treatment) in GATS?
Article II applies universally while Article XVII applies only when specific commitments are made
National treatment prohibits treating foreign suppliers less favorably than domestic ones.
What are the two types of discrimination addressed by Article XVII?
- De jure discrimination
- De facto discrimination
De jure is explicit in law, while de facto is indirect based on easier criteria for nationals.
Fill in the blank: The World Trade Organization is an umbrella organization for ______.
GATT, GATS, TRIPS, and the dispute settlement unit (DSU)
The WTO facilitates global trade negotiations and dispute resolution.
