International Trade Laws - Essay Example

This works for the higher competitive advantage of the national companies, and thus 'closing eyes' on the illegal actions foreign companies take abroad, as well as trying to sue them for the refund of the damages which national companies pay abroad, and which is often resolved for the benefit of the national company, is a means of fighting competition through the means and methods which are legal only on the surface. 'Competition law embodies an inherent conflict while protecting local consumers from monopolies, cartels and oligopolies - it ignores the very same practices when directed at foreign consumers'.

(Francis, 1995) For example, even GATT /WTO rules allow the existence of the foreign trade cartels, and if the same actions would be considered to be illegal within the country, these actions are seen as proper and legal at the international level. (Mathis, 2002) It was interesting to note, that one of the literary sources recommends adoption of the claw back provisions for the poor countries, which would want to develop their export markets. These claw back provisions would allow local courts to refund any penalty payment put on the local company by a foreign entity for the violation of trade policies and using unfair methods of international trade. . Let's have a closer look at the GATT International Antitrust Code, which has created the four main principles, violated through the use of claw back provisions.

- National laws should be applied to solve international competition problems; - Parties, regardless of origin, should be treated as locals; - A minimum standard for national antitrust rules should be set (stricter measures would be welcome); and - The establishment of an international authority to settle disputes between parties over antitrust issues. (Tarullo, 2002)The use of claw back provision if the violation of the first noted principle - they are not crated in accordance with the international laws and they don not foster creation of the laws which would support competition on the international level.

Moreover, 'parties, regardless origin, should be treated as locals'; however claw back provisions are clear examples of the absolutely opposite actions of the parties. Claw back provisions are often depicted as the best means of protecting the parties from the improper judicial treatment in the foreign country; however fighting illegal actions and unfair competition is possible only through the adoption and use of such fines and damage payments for the benefit of the party the rights of which were violated.

According to the Havana Charter 1947, there is a list of actions which are supposed to be illegal and represent the moves of the unfair competition; among these actions are discriminating particular enterprises, excluding enterprises from a specific territorial market, etc. Claw back provisions, on the contrary give local (national) companies legal basis for unfair competition' actions in the foreign country through understanding that in case they are sued, their country of