Trade and Commerce in Australia - Essay Example

Commercial and Corporations Law in Australia [Student’s Name] [Student Number] [Assignment] Word Count: Commercial and Corporations Law in Australia Introduction Commercial law is considered as a body of law in commerce or business that is involved in the application of rights, relations and conduct of respective countries in the process of engaging in trade and commerce. Hence commercial and corporate law forms an essential aspect in business and commerce that requires to be put into consideration particularly in the context of international trade and commerce. International trade involves the exchange of goods and services through international borders that generally represent an important level of the Gross Domestic Product (GDP). International trade involves the context of comparative advantage whereby countries engage in export of goods within borders whereby they will acquire a relative cost advantage. Hence commercial law mainly deals with the formulation and implementation of policies that can be considered as both private and public law. The regulation body in terms of policies and law is essential for the benefits of trade and commerce to be experienced by various nations within or outside their jurisdiction. In the context of a globalized world it is important to consider the fact that trade policies play an important role as they dictate the manner in which various countries will interact in terms of trade and commerce. Thus, international trade mainly consists of both bilateral and multilateral international policies that involve the engagement of trade and commerce among these countries. The paper therefore aims at identifying three areas whereby internationalization of regulations would benefit countries irrespective of their jurisdiction in terms of trade and commerce (Jain, 2012). Free Trade Policies The commercial and corporations laws within the context of international trade play an important role. This is due to the fact that these laws or policies determine the benefits that a country may be able to obtain in terms of trade and commerce. Free trade policies ensures a competitive form of advantage whereby countries are permitted to engage in whatever they can produce best so as to gain. However, free trade requires some form of regulations through the use of policies so as to safeguard a competitive and genuine form of advantage between trading nations. The international market determines the approach of comparative form of advantage through encouraging countries to trade in what they can be able to do better so as to gain a comparative form of advantage. According to the commercial law, competitive advantage should further be attained by each country in relation to the transaction of goods and services. In addition, science and technology plays an important role in the facilitation of free trade internationally. Hence science and technology plays an important role in the regulation of international trade. Within the free trade arena the process of setting standards is essential in the regulation of the quality of trade transaction within the international context. The World Trade Organization (WTO) forms an important body that facilitates the regulation of policies in the context of international trade agreements (WTO, 2012). Within the free trade policy the element of regulation of trade in terms of goods and services while at the same time ensuring that there is the aspect of standardization that meets the international level is essential in the regulation and setting out policies that will benefit various countries while engaging in the process of international trade and commerce. For instance the commercial and corporations law stipulates that “each party shall ensure that its laws and regulations provide high levels of environmental protection and shall continue to strive to improve the set laws and regulations”. In addition the European Union moved to set out protection in terms of regulation of international trade in Article 95(3) stipulated in the European Union Treaty. In relation to the standards of goods within the framework of free market policy Article 2(2) of the agreements set out by WTO and various states in the engagement of international form of trade implies that various measures will be taken in regulation of quality of goods and services with the focus on provision of scientific form of evidence with scientific principles. Dumping Policies International commodity policy involves an agreement among the trading partners within the context of international trade for the purpose of improvement of the functioning process of the global market. Dumping therefore is considered as a condition of international price discrimination. In economics dumping involves a type of predacious form of pricing particularly within the context of international trade. Hence in this case the process of dumping is considered as an act of charging lower prices in international trade as compared to similar prices within the domestic forms of market. Hence within the WTO agreement in the international trade and commerce dumping is fated as it causes material form of injury to the domestic market. Therefore in this case dumping is viewed as a form of protectionism. Countries within the context of international trade engage in the process of dumping so as to protect the domestic market in terms of jobs and market competitiveness. With the existence of dumping in the international trade and commerce there is need to set up anti-dumping rules or regulations that will reduce the rate of dumping by various countries engaging in international trade arena (Gupta, 2013). Therefore dumping involves the procedure whereby goods are exported by a country to another at a lower price as compared to the normal value of the goods being exported. Thus dumping is considered as an unfair trade procedure that involves a distortive impact on the international trade and commerce. Dumping is generally practiced through various forms of illegal means such as smuggling. On the other hand anti-dumping involves various measures that are aimed at counteractive the distortive impacts of the vice within the context of international trade. WTO advocates for the use of anti-dumping measures as an important tool in fair competition in international trade and commerce. In the real sense the anti-dumping measures is an essential aspect in the protection of domestic market against the insurgence of cheaper commodities. WTO forms an important organization or trade body that plays a major role in alleviating dumping for the benefit of international trade and commerce (Article VI GATT 1994). Article 6 therefore permits countries to take the necessary form of actions against dumping. The anti-dumping agreement goes ahead and explains the provisions of the anti-dumping measures in the article. Hence Article 6 further permits countries to act outside the main principles of GATT principles by not offering any form of discrimination between the trading partners. In the context of Australia there is the use of both commercial and corporate laws as a form of anti-dumping strategy or policies. In order to counteract the dumping process by various countries in international trade and commerce there is the policy of charging an extra import duty on the products forms the exporting countries so as to enable the pricing to be closer to the normal price of the product. Furthermore, Article VI of GATT 1994 considers various basic principles that are mainly applicable in trading between WTO members. This principle includes “most favored nation principle”. These principles involve the requirement that imported goods should be exposed to internal form of taxes. WTO member states also agreed on the instituting of schedules of destined tariff rates. In instances whereby dumping impacts on the injury of domestic market or stagnates the domestic industry GATT 1994, openly approves the imposition of a particular anti-dumping duty on imports from a precise source in surplus of bound tariffs. Article VI therefore comprises of various forms of provisions for the regulation of dumping within the context of international trade. Therefore the agreement in relation to the implementation of Article VI of GATT 1994 is generally referred to as an Anti-Dumping Agreement. Thus the Article on implementation of Article VI of GATT has provisions of detailed forms of rules in regards to the methodology of determination of whether a particular product has been dumped. Hence the criteria involves taking into consideration the injury or harm that has been caused to the domestic market and the procedures to be followed in conducting the anti-dumping inquiries and the length of the anti-dumping measures to be followed. Furthermore, the agreement set into clarify the duties of dispute settlement panel in cases of evolving disputes in regards to anti-dumping actions that are taken into account by the domestic industry so as to protect and safeguard other trading partners within the context of international trade and commerce (Rao & Guru 2012). In addition, Article 1 of the Agreement in relation to dumping in international trade involves the establishment of fundamental standard that members of WTO are permitted to engage in the imposition of anti-dumping measures in relation to making of a determination on the occurrence of dumping, material harm to the domestic industry and if there is the existence of the association between the occurrence of dumping and causation of harm to the domestic industry (Anti-Dumping Rules[Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995]. Fair Trading Policies Fair trading involves an important aspect that is essential in international form of trade. Fair trading within the context of international trade is important in relation to the confidence of the trading partners while at the same time ensuring a conducive trading environment between member countries for the benefits of international trade and commerce to be attained. Statutes and international agreement have intervened in the selection of law and the optimal of law and the choice of jurisdiction within international trade and transport. For instance “Bills of Exchange Act 1909 (Cth); Sea Carriage of Goods Act 1924 (Cth) embraced the Hague forms of rules whereby the Australian arbitrations were further replaced by Carriage of Goods by sea Act 1991 (Cth) that forms the Warsaw convention while adopting the United Nations in relation to the sale of goods in trade and commerce. In this regard the common law approach is further engaged in the construction of trade and commerce agreements within the context of Australia. These commercial laws are therefore engaged in both intra-state and inter-state trade and commerce activities. Hence this trend is considered as a benefit to various countries that enact such policies for the purpose of engaging in the international form of trade globally. In relation to fair trade agreements in relation to commercial and corporate law Trade in Civil Aircraft came into force in 1980. This policy agreement involves the eradication of import duties in relation to all aircrafts apart from military aircraft in regards to the products covered by civil aircrafts. These laws and regulations are considered as procedures that are procured by the government in a transparent manner in order to protect domestic products and in the process discriminate against foreign products. In addition it strengthens rules that guarantee fair and non-discriminatory settings of international competition in trade and commerce. These regulations therefore involve a fair form of trade whereby the participating countries are able to benefit to the fullest of their abilities. In this case the government will set out policies that will ensure its involvement in international trade contracts that are worth through the rules of agreement (Cherunilam, 2013). Conclusion International trade involves the engagement in the process of trade and commerce between different countries as partners in the international trade globally. International trade and commerce has further been enhanced through the process of use of science and technology. International trade has various benefits and advantages that are generally associated with its nature of the trading system globally. These benefits are generally in terms of the involvement in international trade. Commercial and corporate laws form an important aspect and element that are involved in international trade for the purposes of enhancing the benefits within the trading partners or countries irrespective of their jurisdiction. Hence in order for the trading countries to fully enjoy the benefits of international trade there are various rules and regulations that are set form so as to control international form of trade for the benefit of the participating countries. These regulations are mainly in terms of policies that guide the member countries in the process of engaging in international trading system. These policies as discussed above include; free market policies, dumping policies and fair trading policies. These policies and regulations are therefore essential in assisting member countries within the context of international trade maximize on the benefits of partaking in international trading zone. Works Cited Foreign Trade Policy and handbook of Procedures by R.K.Jain (17th Edition 2012) Anti-Dumping Law and Procedures by R.K.Gupta (4th Edition 2013) International Trade and Export Management by Francis Cherunilam, 2013. WTO and International Trade by M.B.Rao and Manjula Guru. 2012. Sea-Carriage Documents Act 1997 (NSW) ss8-11 and equivalent in other States; Carriage of Goods by Sea Act 1991 (Cth) adopting the Hague Visby Rules, Art 3 r8 which concerns exclusion of liability in contract, tort and default. Carriage of Goods by Sea Act 1991 (Cth) s11 which makes void an ouster of Australian jurisdiction, applies the Hague Visby Rules and the amended Hague Visby Rules, to imports where the country of shipment has not adopted one of these international conventions. 20 Bills of Exchange Act 1909 (Cth), s77 applying Australian law. Anti-Dumping Rules [Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. Article VI of GATT 1994 Read More