International business transactions : a context and practice casebook / Amy Deen Westbrook, Kurt M. Sager Memorial Distinguished Professor of International and Commercial Law, director of the Business and Transactional Law Center, Washburn University School of Law.
2014
K3943 .W467 2014 (Map It)
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Details
Author
Title
International business transactions : a context and practice casebook / Amy Deen Westbrook, Kurt M. Sager Memorial Distinguished Professor of International and Commercial Law, director of the Business and Transactional Law Center, Washburn University School of Law.
Published
Durham, North Carolina : Carolina Academic Press, [2014]
Call Number
K3943 .W467 2014
ISBN
9781594608247 (hbk.)
1594608245 (hbk.)
1594608245 (hbk.)
Description
xxviii, 760 pages : illustrations, forms ; 26 cm.
System Control No.
(OCoLC)877808938
Bibliography, etc. Note
Includes bibliographical references and index.
Series
Record Appears in
Table of Contents
Table of Cases
xxiii
Series Editor's Preface
xxv
Preface and Acknowledgments
xxvii
ch. 1
Introduction
3
I.
International Business
3
A.
What Is International Business?
3
Exercise: Who Owns This?
4
B.
How Are International Business Transactions Different?
4
Exercise: Karl's Kitchenware
4
Exercise: Karl's Kitchenware, Part II
5
C.
Sources of Law: The Legal Framework for International Business
5
D.
Your Role as Counsel
6
II.
Globalization
6
A.
What Is Globalization, and How Global Is It?
7
IMF Staff, Globalization: A Brief Overview (2008)
7
Exercise: Defining Globalization
9
B.
The Globalization Debate
10
Exercise: Analyze the Policy Arguments
10
IMF Staff, Globalization: A Brief Overview (2008)
10
Globalization and Its Discontents (2002) / Joseph Stiglitz
11
Exercise: Whose Globalization?
16
Exercise: Siemens
17
Exercise: Globalization Policy Arguments
17
ch. 2
International Trade History and Economics
19
I.
International Trade History
19
A.
Introduction
19
1.
How and Why Did We Get Here?
19
Exercise: Peterstan Opens to International Trade
19
2.
Is International Trade "Good" or "Bad"?
20
II.
Classic Economic Arguments
20
A.
Mercantilism
20
Exercise: Understanding Mercantilism
20
"Mercantilism," The Concise Encyclopedia of Economics (2012) / Laura LaHaye
21
B.
Specialization and the Division of Labor: Adam Smith
22
Exercise: Adam Smith
23
C.
Comparative Advantage: From David Ricardo to Professional Sports
24
1.
David Ricardo's Theory of Comparative Advantage
24
Free Trade under Fire (3rd ed., 2009) / Douglas A. Irwin
24
Exercise: Ricardo's Comparative Advantage Example---Cloth and Wine
25
Exercise: Another Comparative Advantage Example with Shoes and Fabric
26
2.
Comparative Advantage in Sports
26
Exercise: Babe Ruth
26
Exercise: Should the Senior Partner Make His Own Photocopies?
27
Exercise: The Policy Implications of Comparative Advantage
27
3.
What Is the Catch?
27
Exercise: Critical Thinking about Comparative Advantage
28
Exercise: Looking Ahead---Free Trade vs. Protectionism
28
III.
Historical Background
28
A.
Pre-World War II
28
The GATT Legal System and World Trade Diplomacy (1990) / Robert Hudec
29
Exercise: What Did Smoot-Hawley Do?
31
B.
Post-War Institution Building
31
1.
The Post-War Environment and the Birth of the GATT
31
International Economic Law (2nd ed., 2008) / Andreas F. Lowenfeld
31
2.
The United Nations
34
The United Nations, The History of the UN
34
3.
The IMF and the World Bank
35
The IMF, IMF Fact Sheet: The IMF and the World Bank (March 29, 2011)
35
The IMF, IMF Factsheet: The IMF at Glance (August 22, 2012)
36
The IMF and the World Bank---How Do They Differ? (1996) / David D. Driscoll
37
Exercise: The IMF and the World Bank
42
C.
The General Agreement on Tariffs and Trade
42
Exercise: Understanding Bretton Woods
44
D.
The GATT Evolves
44
The GATT Legal System and World Trade Diplomacy (2d ed., 1990) / Robert E. Hudec
44
Exercise: The GATT
46
E.
The Uruguay Round and the World Trade Organization
47
1.
The Establishment of the World Trade Organization
47
International Trade Law and the GATT/WTO Dispute Settlement System 1948--1996: An Introduction, 12 ed. (1997) / Ernst-Ulrich Petersmann
47
Exercise: The WTO Agreement
49
F.
The Doha Development Agenda
50
1.
Launching the Round (and Admitting China)
50
Exercise: Chinese Accession to the WTO
50
World Trade Organization, WTO Successfully Concludes Negotiations on China's Entry (September 17, 2001)
50
Exercise: WTO Accession
53
2.
Russian Accession
54
Exercise: Peterstan WTO Accession
54
3.
The Challenges for the WTO
55
Exercise: The Future of the WTO
55
"The Future of the Multilateral Trading System and the WTO," The Future and the WTO: Confronting the Challenges (Ricardo Melendez-Ortiz, Christophe Bellmann and Miguel Rodriguez Mendoza eds.) (July 2012) / Roderick Abbott
55
ch. 3
The Basics of International Trade Law
61
I.
What Are the "Basics"?
61
II.
Most-Favored-Nation Treatment
61
A.
GATT Article I: The Classic Expression of MFN
62
1.
GATT Article I
62
2.
What Does This Really Mean? MFN Scope and Interpretation
63
Exercise: Spanish Treatment of Brazilian Coffee
63
GATT Analytical Index, Article I --- Most Favored Nation Treatment: Spanish Treatment of Brazilian Coffee
64
Belgian Family Allowances (Allocations Familiales), Panel Report Adopted by the GATT CONTRACTING PARTIES on 7 November 1952
65
Exercise: Understanding MFN Obligations
66
B.
Fairness and MFN
66
Exercise: Fairness and MFN
66
C.
Non-Application
67
D.
Case Study: Russia: Non-Application, MFN and the Jackson-Vanik Amendment
68
The Jackson-Vanik Amendment and Candidate Countries for WTO Accession: Issues for Congress (January 4, 2013) / William H. Cooper
69
Exercise: Russian NTR Status and WTO Accession
71
Permanent Normal Trade Relations (PNTR) Status for Russia and U.S.-Russian Economic Ties (December 17, 2012) / William H. Cooper
72
Exercise: What Happened Next?
77
E.
MFN in Contracts and Litigation
77
1.
Most-Favored-Nation Contract Provisions (MFN)
77
Exercise: MFN Clauses
78
2.
MFN Clauses in Settlement Agreements
78
The State of Florida, et al., v. The American Tobacco Company, et al., Settlement Agreement (1997)
78
Most Favored Nation Clauses---"The Ultimate Double Edged Sword" (September 2006) / Charles E. Reynolds, II
80
Exercise: MFN Wrap Up
81
III.
National Treatment
81
A.
The GATT Article III Obligation
81
1.
GATT Article III
81
2.
GATT Article III(2): Internal Taxes and Like Products
82
Exercise: Japanese Alcoholic Beverages
83
WTO Appellate Body Report, Japan --- Taxes on Alcoholic Beverages (October 4, 1996)
84
Exercise: National Treatment from a Broader Perspective
89
3.
What about National Treatment and Culture?
89
Exercise: Split Run Magazines
91
4.
GATT Article III(4): Non-Fiscal Measures
91
Exercise: Canadian Foreign Investment Review Act
91
GATT Panel Report, Canada --- Administration of the Foreign Investment Review Act (July 25, 1983)
92
Exercise: FIRA Undertakings
95
Exercise: National Treatment and FIRA, The Bigger Picture
95
B.
National Treatment in Other Contexts
96
IV.
Tariffs, Non-Tariff Barriers and Quotas
96
A.
Tariffs
96
1.
Types of Tariffs
96
Exercise: Tariffs
97
2.
Bound Tariff Rates
97
3.
Actual Tariff Rates
98
B.
Non-Tariff Barriers (NTBs) and Quotas
99
1.
Non-Tariff Barriers
99
Exercise: Non-Tariff Barriers
99
Exercise: Which NTBs Should Be Permitted?
100
2.
GATT Article XI: Quotas
100
Exercise: Quotas, Tariffs and Tariff-Rate Quotas
101
3.
U.S. Sugar Tariff-Rate Quotas
101
United States Department of Agriculture Foreign Agricultural Service, FACT SHEET: U.S. Sugar Program (December 2008)
102
U.S. Department of Agriculture, Office of the Secretary, USDA Reassigns Domestic Cane Sugar Allotments and Increases the Fiscal Year 2011 Raw Sugar Tariff-Rate Quota (April 12, 2011)
103
Exercise: Sugar
104
V.
Exceptions and Other Derogations
104
A.
National Security
104
WTO/GATT Analytical Index, Article XXI: Security Exceptions
105
B.
General Exceptions and Related Agreements
107
1.
The GATT General Exceptions
107
2.
Standards---Technical Barriers to Trade
108
Exercise: Voluntary or Mandatory?
109
The WTO, Technical Information on Technical Barriers to Trade
109
3.
Sanitary and Phytosanitary Measures
115
The WTO, Agreement on Sanitary and Phytosanitary Measures
115
WTO Agreement on the Application of Sanitary and Phytosanitary Measures
115
Exercise: Trade and Environment
116
Exercise: The Bigger Picture for Exceptions
116
Annex A
Trade Functions in the United States
117
Introduction: Who Is in Charge?
117
I.
Congress
117
II.
The Executive Branch
118
A.
Office of the U.S. Trade Representative (USTR)
118
B.
Department of Commerce (DOC)
118
C.
Homeland Security: U.S. Customs and Border Protection (CBP)
119
D.
U.S. International Trade Commission (ITC)
119
III.
The Judiciary
119
Exercise: U.S. Trade Policy Actors
120
ch. 4
The International Monetary System
121
I.
Introduction
121
II.
Foreign Exchange Rates
121
A.
What Are Foreign Exchange Rates?
121
Example
121
Example: Exchange Rates
122
Exercise: Fixed and Floating Exchange Rates
122
B.
Exchange Rate History
123
International Monetary Fund: Background and Issues for Congress (March 21, 2013) / Martin A. Weiss
125
Balance-of-Payments Basics
126
"The Bretton Woods International Monetary System: An Historical Overview," A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform (Michael D. Bordo and Barry Eichengreen, eds.) (1993) / Michael D. Bordo
128
Exercise: U.S. Dollar Exchange Rates
132
Europa, "Towards a Single Currency: A Brief History of EMU," Summaries of EU Legislation, Economic and Monetary Affairs, Practical Aspects of Introducing the Euro (2011)
133
Exercise: Euro or No Euro?
136
C.
Exchange Rate Changes
136
1.
How Are Exchange Rates Set?
136
Example: The Mexican Peso
137
Exercise: Exchange Rate Risk Drafting Exercise
137
2.
How Do Exchange Rates Change? Depreciation, Appreciation, Devaluation and Revaluation
138
Federal Reserve Bank of New York, Fedpoint: Currency Devaluation and Revaluation
138
3.
Arbitrage
140
Exercise: How Do Exchange Rates Impact Business Decisions?
141
4.
Exchange Rates and Trade
141
Example: Levi's in Brazil
141
Exercise: Strong and Weak Currencies
142
D.
Case Study---Is China a Currency Manipulator?
142
China's Currency Policy: An Analysis of the Economic Issues (December 19, 2011) / Marc Labonte
143
Exercise: China's Currency "Manipulation"
149
III.
Balance of Payments
149
Federal Reserve Bank of New York, FedPoint: Balance of Payments (May 2009)
150
Exercise: Peterstan's Balance of Payments
151
IV.
What Next?
153
"Espirit de Currency," Finance & Development (June 2011) / Douglas A. Irwin
153
Exercise: Exchange Rates, Balance of Trade and Balance of Payments
157
ch. 5
GATT/WTO Dispute Settlement
159
I.
How Do Nations Settle Trade Disputes?
159
A.
Sovereign Actors
159
B.
Mechanisms and Venues
159
II.
GATT/WTO Dispute Settlement
160
A.
The GATT System
160
1.
GATT Articles XXII and XXIII: Consensus and Compliance
160
Exercise: Parsing the GATT Agreement
161
Exercise: Consensus-Based Dispute Settlement
162
2.
GATT Disputes
162
The GATT/WTO Dispute Settlement System: International Law, International Organizations, and Dispute Settlement (1997) / Ernst-Ulrich Petersmann
163
Exercise: Cherryvale---USE GATT Dispute
165
B.
The WTO Dispute Settlement Understanding (DSU)
166
1.
Overview
166
World Trade Organization Understanding on Rules and Procedures Governing the Settlement of Disputes
166
2.
Issues and Goals
167
Exercise: Identify the Sections That Address the Weaknesses
168
3.
The DSU Text
168
Exercise: Cherryvale Seeks a Remedy Using the DSU
179
III.
Case Study: The "Shrimp Turtle" Dispute
179
A.
The General Exceptions
179
Exercise: GATT Article XX(g) Purpose and Limits
180
B.
The Dispute
180
World Trade Organization, United States---Import Prohibition of Certain Shrimp and Shrimp Products
180
WTO Appellate Body Report, United States---Import Prohibition of Certain Shrimp and Shrimp Products (issued October 12, 1998)
181
Exercise: How Long Does a Dispute Settlement Action Take?
184
C.
Implementation
185
World Trade Organization, United States---Shrimp: Implementation Phase (Article 21.5)
185
WTO Appellate Body Report, United States---Import Prohibition of Certain Shrimp and Shrimp Products (Recourse to Article 21.5 by Malaysia) (October 22, 2001)
186
Exercise: Evaluating the Dispute Settlement Process
188
ch. 6
Regional Trading Arrangements
189
I.
The Nature and Purpose of Regional Trading Arrangements
189
World Trade Organization, Regional Trade Agreements: Facts and Figures, How Many Regional Trade Agreements Have Been Notified to the WTO?
189
A.
Types of Arrangements: Free Trade Agreements and Customs Unions
190
B.
The Role of Such Arrangements in the Multilateral Trading System
191
1.
GATT Authorization
191
Exercise: Parsing GATT Article XXIV
192
2.
Why Does the GATT Allow RTAs?
192
C.
The Impact of RTAs
193
1.
Do RTAs Have a Positive or Negative Impact on Trade Liberalization?
193
2.
Do RTAs Create or Divert Trade (and Jobs)?
193
II.
U.S. Regional Trading Arrangements
195
A.
With Whom Do We Have Them?
195
U.S. Department of Commerce, International Trade Administration, U.S. Merchandise Trade Balance
196
Exercise: What Do RTA Statistics Mean?
196
Exercise: Picking FTA Partners
196
B.
Typical FTA Provisions
197
1.
How Do FTAs Work?
197
International Trade: Rules of Origin (January 5, 2012) / Michael F. Martin
198
Exercise: Preferential and Non-Preferential Rules of Origin
201
U.S. Department of Homeland Security, Customs and Border Protection, NAFTA: A Guide to Customs Procedures
203
Exercise: What Is Duty-Free?
205
2.
FTA Dispute Settlement (the NAFTA Model)
206
3.
Substantive Sectors Covered
209
Exercise: Which FTAs Include Labor and Environmental Provisions?
211
Exercise: What Services Should Be Opened to Foreign Competition?
212
C.
Why Do We Have RTAs and How Do We Assess Them?
212
The Pew Research Center, Public Support for Increased Trade, Except with South Korea and China: Fewer See Benefits from Free Trade Agreements (2010)
212
Exercise: Public Opinion of Free Trade Agreements
216
III.
The European Union
217
A.
History
217
1.
1945--1959: Cooperation Began in the Post-War Period
217
2.
1960--1969: The EEC Countries Enjoyed Economic Growth
218
3.
1970--1979: The EEC Expanded
218
4.
1980--1989: A Decade of Change
219
5.
1990--1999: Increasing Integration
220
6.
2000--2009: Further Expansion
221
7.
2010--Today: Financial Crisis Fallout
223
B.
EU Structure and Institutions
224
1.
Institutions and Procedures
224
Europa, How the EU Works: EU Institutions and Other Bodies
224
2.
Case Study: EU Accession: Albanian Candidacy
226
Exercise: Parsing an EU Document
227
European Commission, Commission Opinion on Albania's Application for Membership of the European Union (November 9, 2010)
227
Exercise: Albanian Accession
234
ch. 7
Trade in Services
235
I.
Services
235
A.
Background: Trade in Services
235
The World Trade Organization, The General Agreement on Trade in Services: An Introduction (2006)
235
B.
What Is a Service?
237
The World Trade Organization, The General Agreement on Trade in Services: An Introduction (2006)
237
C.
How Do You Classify Services Trade?
238
The World Trade Organization, The General Agreement on Trade in Services: An Introduction (2006)
238
Exercise: Modes of Supply
239
Exercise: Which Services "Matter"?
240
II.
GATS Obligations
240
A.
General Obligations
241
1.
Overview of Obligations
241
Uruguay Round Agreements Act Statement of Administrative Action, The General Agreement on Trade in Services (1994)
242
2.
MFN and Exceptions to MFN
245
B.
Specific Commitments
247
1.
Market Access and National Treatment
247
Uruguay Round Agreements Act Statement of Administrative Action, The General Agreement on Trade in Services (1994)
247
2.
Schedules of Commitments
248
The World Trade Organization, GATS Training Module---Main Building Blocks: Agreement, Annexes and Schedules: 2.5 Specific Commitments
248
3.
How to Read a Schedule
249
The World Trade Organization, GATS Training Module, Main Building Blocks: Agreement, Annexes and Schedules: 2.6 How Schedules Are Structured
249
III.
Case Study: Services and Dispute Settlement: GATS and the Internet Gambling Dispute
251
A.
The Background of the Dispute
251
Exercise: Try to Answer the Following Questions
251
The World Trade Organization, WTO Dispute DS285: United States---Measures Affecting the Cross-Border Supply of Gambling and Betting Services
252
B.
The Appellate Body Report
256
Exercise: Try to Answer the Following Questions
256
The World Trade Organization, Report of the Appellate Body, United States---Measures Affecting the Cross-Border Supply of Gambling and Betting Services (April 7, 2005)
256
Exercise: Who Won?
261
C.
Noncompliance and Retaliation
261
Exercise: Understanding Retaliation
262
Exercise: The "Irish Gambling Association"
262
IV.
Financial Services
263
Marilyne Pereira Goncalves and Constantinos Stephanou, Financial Services and Trade Agreements in Latin America and the Caribbean: An Overview (2007)
263
Research Exercise: China and Financial Services
267
ch. 8
Foreign Investment
269
I.
The Regulation and Assessment of Foreign Investment
269
A.
What Is Foreign Investment?
269
B.
Foreign Direct Investment "Rules"
269
1.
International Law
269
Exercise: Venezuela
271
2.
WTO Investment Agreement: TRIMs
272
3.
Bilateral Investment Treaties
272
4.
Regional Trading Agreements
273
5.
National Measures
273
C.
Home Country and Host Country Considerations
273
Exercise: Developed or Developing?
274
D.
FDI Flows
274
1.
Levels of Foreign Direct Investment
274
World Bank Group, Investing Across Borders 2010: Indicators of Foreign Direct Investment Regulation in 87 Economies (2010)
275
2.
Investment Considerations
276
World Bank Group, Investing Across Borders 2010: Indicators of Foreign Direct Investment Regulation in 87 Economies (2010)
276
Exercise: Draft a Memorandum about Choosing a Host Country
277
E.
Corporate Social Responsibility
277
Exercise: Kings Apparel
278
II.
Bilateral Investment Treaties
278
A.
Definition and Purpose of BITs
278
Office of the U.S. Trade Representative, Bilateral Investment Treaties
279
B.
The Model BIT
280
U.S. Department of State, Office of the Spokesperson, Fact Sheet, Model Bilateral Investment Treaty (April 20, 2012)
280
2012 U.S. Model Bilateral Investment Treaty
282
Exercise: Finding Substantive Obligations in the 2012 Model BIT
297
Exercise: Revise the 2012 Model BIT
298
III.
Regional Trade Agreement Investment Provisions
298
A.
NAFTA Chapter 11 Substantive Requirements
298
1.
NAFTA Chapter 11, Parts A and C Provisions
298
Exercise: Think about the Following Questions
298
NAFTA: Part Five: Investment, Services and Related Matters
299
Exercise: Translate (Paraphrase) Chapter 11, Part A Obligations
304
Exercise: Expropriation: Yes or No?
304
B.
NAFTA Chapter 11 Investment Disputes
305
1.
NAFTA Chapter 11, Part B
305
Exercise: Think about the Following Questions
305
NAFTA: Part Five: Investment, Services and Related Matters
306
Exercise: Can This Claim Proceed?
310
2.
Chapter 11 Controversy
310
3.
Chapter 11 Usage
311
Exercise: Chapter 11 Policy
312
IV.
Host Country Measures Relating to Foreign Investment
312
A.
Measures Restricting Foreign Investment
312
World Bank Group, Investment Climate Advisory Services, Investing Across Borders 2010: Indicators of Foreign Direct Investment Regulation in 87 Economies (2010)
313
Exercise: Developing Country Review of Foreign Investment
318
World Bank Group, Investment Climate Advisory Services, Investing Across Borders 2010: Indicators of Foreign Direct Investment Regulation in 87 Economies (2010)
318
B.
The Committee on Foreign Investment in the United States (CFIUS)
319
1.
How Does CFIUS Work?
319
U.S. Department of the Treasury, The Committee on Foreign Investment in the United States (CFIUS)
320
The Exon-Florio National Security Test for Foreign Investment (October 1, 2012) / James K. Jackson
322
Exercise: CFIUS Provisions
332
2.
CFIUS Procedures
333
3.
What Happens If a Covered Transaction Is Not Reported? The Dubai Ports World Transaction
334
Exercise: Huawei Technologies Co.
334
4.
Case Study: Blocking Chinese Investment in a Wind Farm Project
335
U.S. Department of the Treasury Press Release, Statement from the Treasury Department on the President's Decision Regarding Ralls Corporation (September 28, 2012)
335
Exercise: Wind Farms
337
Annex A: Exon-Florio and Other CFIUS Provisions
337
ch. 9
Trade Remedies
353
I.
Introduction: Remedies for Foreign Trading Practices
353
II.
Unfair Trade Practices: Antidumping and Countervailing Duties
354
A.
Introduction
354
Exercise: Basic Questions
354
1.
Dumping
355
2.
Subsidies
355
3.
Injury
357
Research Exercise: Softwood Lumber
357
4.
Policy Arguments: Equity or Protection?
357
Free versus Fair Trade: The Dumping Issue (August 1998) / Karen Schiele
359
Exercise: Understand the Policy Arguments
363
B.
International Obligations
363
1.
WTO Agreements
363
Exercise: GATT Articles VI and XVI Fill in the Blanks
365
Exercise: Parsing the SCM Agreement
370
C.
U.S. Measures
370
1.
Initiating Antidumping and Countervailing Duty Investigations
370
Trade Remedies: A Primer (June 14, 2006) / Vivian C. Jones
370
2.
Imposing Antidumping Duties
373
Exercise: Filing a Petition and Figuring the Dumping Margin
373
3.
Imposing Countervailing Duties
374
Exercise: Imposing Countervailing Duties on Non-Market Economies
377
4.
Injury
378
U.S. International Trade Commission, Antidumping and Countervailing Duty Handbook (13th ed. 2008)
379
5.
Domestic Like Product
381
U.S. International Trade Commission, Antidumping and Countervailing Duty Handbook (13th Ed. 2008)
382
Exercise: Certain Orange Juice from Brazil
383
6.
Procedural Steps
384
Exercise: Antidumping Procedure
385
Exercise: Make a Flow Chart
385
7.
Appeal and Review
385
8.
Other U.S. Measures---Now Extinct
386
D.
Regional Trade Agreements: NAFTA Binational Panels
387
Exercise: Why Do We Have Binational Panels?
390
Expanding the NAFTA Chapter 19 Dispute Settlement System: A Way to Declaw Trade Remedy Laws in a Free Trade Area of the Americas? / Stephen J. Powell
390
Exercise: Thinking More Deeply about Binational Panels
397
III.
Other Remedies for Unfair Trade Practices
397
A.
Section 301
397
1.
Background
397
Exercise: Understanding the Section 301 Statute
399
2.
Overview
400
U.S. House of Representatives, Committee on Ways and Means, Overview and Compilation of U.S. Trade Statutes (2010)
400
3.
Procedure
404
4.
Remedies
404
5.
Super 301
405
U.S. House of Representatives, Committee on Ways and Means, Overview and Compilation of U.S. Trade Statutes (2010)
405
Exercise: Super 301
406
6.
Section 301: Unilateralism and the WTO
406
World Trade Organization, U.S.---Section 301 Trade Act (2012)
408
Exercise: WTO Section 301 Panel Decision
409
Exercise: China Currency
409
7.
Special 301
409
U.S. House of Representatives, Committee on Ways and Means, Overview and Compilation of U.S. Trade Statutes (2010)
409
Exercise: Special 301
410
B.
Section 337
410
U.S. House of Representatives, Committee on Ways and Means, Overview and Compilation of U.S. Trade Statutes (2010)
412
Exercise: Section 337 Action
413
C.
More Intellectual Property Remedies: Gray Market Goods/Parallel Imports
414
1.
In the Trademark Context
414
U.S. Department of Homeland Security, U.S. Customs and Border Protection, What Every Member of the Trade Community Should Know About: CBP Enforcement of Intellectual Property Rights (August 2012)
414
2.
In the Copyright Context
416
Exercise: Gray Market Goods
419
IV.
Remedies for Fair Trading Practices
419
A.
Safeguards/Escape Clause Actions
419
1.
Introduction
419
2.
GATT/WTO Rules for Safeguards Relief
419
The World Trade Organization, Safeguards: Emergency Protection from Imports
420
The World Trade Organization, Agreement on Safeguards
422
3.
U.S. Law: Section 201 Actions
425
U.S. House of Representatives, Committee on Ways and Means, Overview and Compilation of U.S. Trade Statutes (2010)
427
U.S. International Trade Commission, Steel: Investigation No. TA-201-73 (December 2001)
432
Exercise: Reading Skills---The Steel Investigation
436
Exercise: Safeguards, Steel and Politics
437
B.
Section 406: Market Disruption by Imports from Communist Countries
437
U.S. House of Representatives, Committee on Ways and Means, Overview and Compilation of U.S. Trade Statutes (2010)
437
C.
Section 421 (China)
438
U.S. House of Representatives, Committee on Ways and Means, Overview and Compilation of U.S. Trade Statutes (2010)
440
Exercise: Section 421: Politics
442
D.
Trade Adjustment Assistance
443
U.S. Department of Labor, Trade Adjustment Assistance for Workers (2012)
443
U.S Department of Labor, Trade Adjustment Assistance Program: Getting Back to Work after a Trade Related Layoff
445
U.S. Government Accountability Office Report to Congressional Committees, Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and Services Firms, but Measures, Data, and Funding Formula Could Improve (September 2012)
447
Exercise: Trade Adjustment Assistance
448
ch. 10
Imports
449
I.
Introduction
449
II.
Entry and Inspection
450
A.
Entry
450
B.
Inspection
451
III.
Product Classification
451
A.
The Harmonized System
451
Exercise: Find the Correct Classification
454
B.
Tariff Classification Rules
455
U.S. Department of Homeland Security, Customs and Border Protection, What Every Member of the Trade Community Should Know About: Tariff Classification (May 2004)
455
C.
Interpretation of the Harmonized System: General Rules of Interpretation
459
U.S. International Trade Commission, Harmonized Tariff Schedule of the United States, General Rules of Interpretation (2011 (Rev. 1))
459
Exercise: Using the General Rules of Interpretation
460
Exercise: Another Approach to Using the HTSUS and the General Rules of Interpretation: Multiple Choice Practice
462
IV.
Country of Origin: "Where Is It From?"
465
A.
Rules of Origin
465
B.
Country of Origin Marking
466
Exercise: Country of Origin Marking
468
Bestfoods (formerly known as CPC International, Inc.) v. United States
468
Exercise: Understanding Bestfoods
473
V.
Appraisal/Valuation
473
U.S. Department of Homeland Security, Customs and Border Protection, What Every Member of the Trade Community Should Know About: Customs Value (July 2006)
473
Exercise: Valuation
478
Exercise: Appraisal of Asparagus
484
VI.
Liquidation
484
Exercise: Find Importing Forms
485
ch. 11
Exports
487
I.
Introduction: Exports and Imports
487
A.
Overlapping Regimes
487
Exercise: Dual-Use Goods
488
B.
International Export Control Arrangements
489
II.
U.S. Export Controls
490
A.
The Export Administration Regulations
490
Exercise: Parsing the EAR
493
B.
The BIS Process
494
U.S. Department of Commerce Bureau of Industry and Security, Introduction to Commerce Department Export Controls (August 2010)
494
Exercise: Do You Need a License?
502
III.
U.S. Antiboycott Laws
502
A.
Compliance with the Antiboycott Laws
502
B.
The Antiboycott Regulations
503
C.
Boycott Requests
510
U.S. Department of Commerce, Bureau of Industry and Security, Office of Antiboycott Compliance, Examples of Boycott Requests (2012)
510
Exercise: U.S. Antiboycott Requests and Regulations
517
ch. 12
Economic Sanctions
521
I.
Trade and Foreign Policy
521
A.
Economic Sanctions---Ancient History
521
B.
U.S. Use of Sanctions
522
What's in Your Portfolio? U.S. Investors Are Unknowingly Financing State Sponsors of Terrorism (2010) / Amy Deen Westbrook
522
C.
International Law and Sanctions
523
Exercise: Boycotts
524
II.
U.S. Department of the Treasury Measures
525
A.
U.S. Department of the Treasury, Office of Foreign Assets Control
525
U.S. Department of the Treasury, Office of Foreign Assets Control: About
525
B.
Overview of OFAC Regulations
527
1.
Who Is Subject to the Regulations?
527
2.
Who Is the Target of the Regulations?
527
3.
What Do the Regulations Prohibit (Without a License)?
527
Exercise: The OFAC Regulations
528
III.
Other Measures
528
A.
Additional Congressional Measures: Cuba and the Helms-Burton Act
528
What's in Your Portfolio? U.S. Investors Are Unknowingly Financing State Sponsors of Terrorism (2010) / Amy Deen Westbrook
529
Research Exercise: Pulling Things Together---Helms-Burton and NAFTA
529
B.
Blocking Statutes
530
Exercise: Thinking Back to the U.S. Antiboycott Regulations
530
C.
State and Local Measures
530
1.
The Limits of State Power: The Illinois Sudan Act
530
National Foreign Trade Council, Inc. v. Giannoulias
530
Exercise: Briefing a Case
539
Exercise: Looking More Deeply at the Illinois Sudan Act Case
539
2.
Not So Limited After All? State Debarment and Divestment Measures
539
Iran Contracting Act of 2010
540
Exercise: State Measures
541
IV.
Case Study: Iran Sanctions: Maximum Pressure
542
A.
Introduction
542
B.
Direct Congressional Action: ISA, CISADA and More
542
Exercise: Understanding Iran Sanctions
542
Iran Sanctions (January 10, 2013) / Kenneth Katzman
543
C.
Ban on Trade and Investment in Iran: OFAC Regulations
554
Exercise: Parsing the Iranian Transactions and Sanctions Regulations (ITSR)
554
The Iranian Transactions and Sanctions Regulations
555
Iran Sanctions (January 10, 2013) / Kenneth Katzman
564
Exercise: Apply the Iranian Transactions and Sanctions Regulations
566
D.
Financial Sanctions Against Iran
566
Exercise: Parsing the Iranian Financial Sanctions Regulations
571
Iran Sanctions (January 10, 2013) / Kenneth Katzman
571
E.
Other U.S. Sanctions on Iran
574
1.
The Iranian Assets Control Regulations (31 C.F.R. Part 535)
574
U.S. Department of the Treasury, Office of Foreign Assets Control, An Overview of O.F.A.C. Regulations Involving Sanctions against Iran
574
2.
The Iranian Human Rights Abuses Sanctions Regulations (31 C.F.R. Part 562)
575
Iran Sanctions (January 10, 2013) / Kenneth Katzman
575
F.
Do Sanctions Have an Effect?
577
Iran Sanctions (January 10, 2013) / Kenneth Katzman
577
Exercise: U.S. Sanctions on Iran
580
V.
Economic Sanctions: Effective or a Waste?
581
Exercise: The Policy of Sanctions
581
ch. 13
International Sale of Goods Transactions
583
I.
Why Are International Sales More Complicated?
583
II.
Commercial Terms: INCOTERMS® 2010
584
Exercise: INCOTERMS®---Explain the Concept
586
Exercise: Drafting with INCOTERMS®
587
Exercise: How Do You Use INCOTERMS®?
587
III.
The UN Convention on Contracts for the International Sale of Goods (CISG)
588
A.
What Is the CISG?
588
Exercise: CISG Contracting States
589
B.
Scope and Key Provisions
590
United Nations Convention on Contracts for the International Sale of Goods
591
Exercise: Does the CISG Apply?
593
UN Convention on Contracts for the International Sale of Goods
594
Exercise: Formation under the CISG
596
UN Convention on Contracts for the International Sale of Goods
596
Exercise: CISG Sale of Goods Provisions
600
IV.
Documentary Sales Transactions
601
A.
The Sales Contract
602
Exercise: The Sales Contract
602
Sales and Purchase Agreement
602
Exercise: Making Comments and Representing Your Client
607
Exercise: Moving to the Next Step
608
B.
The Bill of Lading
609
Exercise: Fill Out a Bill of Lading
611
C.
The Letter of Credit
612
ch. 14
Letters of Credit
613
I.
Payment in International Commercial Transactions
613
U.S. Department of Commerce, International Trade Administration, International Finance (2009)
613
Exercise: Common Sense: Payment in International Commercial Transactions
615
II.
Functions and Characteristics of Letters of Credit
615
A.
Documentary Letters of Credit (L/Cs)
615
U.S. Department of Commerce, International Trade Administration, Trade Finance Guide (2012)
616
B.
Letter of Credit Terms
618
Exercise: Note-Taking and Letter of Credit Vocabulary
619
C.
Letter of Credit Mechanics: From Procurement to Payment
620
1.
Obtaining the Letter of Credit
620
2.
Letter of Credit Payment
620
Unconfirmed Letter of Credit Transaction
622
Confirmed Letter of Credit Transaction
623
Exercise: Review a Letter of Credit
623
III.
The Laws Governing Letters of Credit
623
A.
Sources of Law
623
B.
Fundamental Rules of Letter of Credit Law: Strict Compliance and Independence
625
1.
Strict Compliance
625
How Letters of Credit Operate in International Commercial Transactions: An Introduction to the UCP (March 2008) / John W. Head
625
2.
The Independence Principle
632
How Letters of Credit Operate in International Commercial Transactions: An Introduction to the UCP (March 2008) / John W. Head
634
Exercise: Draft Your Own Commercial Letter of Credit
635
IV.
Standby Letters of Credit
637
Exercise: Think about the Big Picture
637
Exercise: Create Your Own Flowchart
638
Exercise: Draft a Standby Letter of Credit
638
ch. 15
Anticorruption
641
I.
Introduction
641
II.
U.S. Foreign Corrupt Practices Act
642
A.
Background and Basics
642
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
642
B.
The FCPA Anti-Bribery Provisions
646
Exercise: Taking Notes and Reading the Statute
649
C.
FCPA Enforcement
649
D.
FCPA Interpretation
650
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
650
1.
Who Is a Foreign Official?
651
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
651
U.S. Department of Justice and the U.S. Securities and Exchange Commission, A Resource Guide to the U.S. Foreign Corrupt Practices Act (November 14, 2012)
653
Exercise: Foreign Official
656
2.
What Does It Mean to Offer or Pay Anything of Value?
656
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
656
3.
What Is the Business Purpose Test?
657
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
657
4.
How Are the Exceptions and Affirmative Defenses Used?
658
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
658
5.
What Is Knowledge?
660
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
660
Exercise: Knowledge
661
U.S. Department of Justice and the U.S. Securities and Exchange Commission, A Resource Guide to the U.S. Foreign Corrupt Practices Act (November 14, 2012)
662
United States v. Bourke
663
Exercise: Knowledge and Conscious Avoidance
670
E.
Drafting to Take FCPA Risks into Account
670
Exercise: Law Texts Unlimited Contracts with a Distributor
671
Exercise: Agency Agreement Provisions
674
U.S. Department of Justice and the U.S. Securities and Exchange Commission, A Resource Guide to the U.S. Foreign Corrupt Practices Act (November 14, 2012)
675
Exercise: Merger/Acquisition Agreements and FCPA Liability
675
F.
FCPA Compliance Programs
676
U.S. Department of Justice and the U.S. Securities and Exchange Commission, A Resource Guide to the U.S. Foreign Corrupt Practices Act (November 14, 2012)
676
Exercise: Compliance Program
680
III.
International Measures
680
A.
International Developments
680
Enthusiastic Enforcement, Informal Legislation: The Unruly Expansion of the Foreign Corrupt Practices Act (2011) / Amy Deen Westbrook
680
B.
The OECD Anti-Bribery Convention
681
Exercise: What Countries Have Implemented the OECD Convention?
682
The Organization for Economic Cooperation and Development, The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
682
Exercise: OECD Convention
683
C.
Other International Measures
683
1.
The United Nations
683
United Nations, Convention against Corruption: Convention Highlights
683
2.
Regional Agreements
685
3.
The World Bank
686
The World Bank, Strengthening Governance: Tackling Corruption: The World Bank Group's Updated Strategy and Implementation Plan (March 6, 2012)
686
4.
Private and Non-Governmental Organizations
688
Trace International, Anti-Bribery Compliance Solutions, Global Enforcement Report 2011 (2011)
689
IV.
Other National Measures
690
A.
U.K. Bribery Act
690
UK Ministry of Justice, The Bribery Act of 2010: Quick Start Guide
691
B.
BRIC Countries
691
Anti-Corruption Developments in the BRIC Countries: A Manufacturer's Alliance for Productivity and Innovation Series (April 2012) / Frederick T. Stocker
692
Exercise: Basic Questions about BRICs
700
ch. 16
Transactional Practice
701
I.
Introduction
701
II.
Sales Agency Agreement
701
A.
Introduction
701
B.
Case Study: The United Properties Sales Agency Agreement
703
Exercise: Understanding the Sales Agency Agreement
706
III.
Marketing and Distribution Agreements
707
A.
Introduction
707
B.
Case Study: The NannyCam Agreement: Understanding and Negotiating
707
Exercise: What Happens If...
713
Exercise: Negotiating the Distribution Agreement
714
C.
Case Study: Southside, Inc.: Understanding and Drafting
714
Exercise: Understanding the Southside Agreement
718
Exercise: The Three "C"s: Drafting the Clauses Missing from the Southside Agreement
718
IV.
Patent License Agreements
719
A.
Introduction
719
B.
Case Study: Custom Antibody Labs, Inc: Working with Documents You May Not Understand
719
Exercise: Custom Antibody Labs, Inc.: Working with Documents You May Not Understand
727
Exercise: Custom Antibody Labs, Inc.: Understanding Key Terms
728
V.
Franchise Agreements
728
A.
Introduction
728
B.
Case Study: The Clean Car Crew Franchise Agreement
729
Exercise: Parsing a Franchise Agreement
743
Exercise: "What happens if...?" Questions about the Clean Car Crew Agreement
743
VI.
International Investment Transactions: Joint Venture
743
A.
Introduction
743
B.
Case Study: The Star --- LEI Joint Venture
744
Exercise: The Two-Minute Summary
754
Exercise: Parsing the Joint Venture Agreement
754
Index
755