International trade - Essay Example

114870 BRITISH MARINE EQUIPMENT ASSOCIATION British Marine Equipment Association (BMEA), established in 1966, is a market oriented trade association, works for the promotion of British manufacturers and suppliers, in other countries and supplies marine equipments to ports, terminals, off shore industries, and fishing industries. It represents the manufacturers and suppliers in all dealings of equipments to passenger ships and government agencies. It provides services to all big and small commercial ships and organises connected exhibitions, seminars, conventions, trade events etc. Nearly sixteen members belonging to various industries form its council that meets often and takes decisions. They led many connected task missions to China, Turkey, India and many other countries successfully. Several International conventions lay down the rules for the maritime organisations to follow as they are bound by these rules. Environmental rules have made the shipping difficult; but at the same time, it is definitely necessary as the seawater or seabed pollution could create unfortunate results, killing the sea animals, birds, fish and eventually affecting the health of humans. Stringent laws have been laid down against oil spill, paints and so many other hazards that could happen through the maritime industry. "The International Convention on the Control of Harmful Anti-fouling Systems on Ships will prohibit the use of harmful organotins in anti-fouling paints used on ships and will establish a mechanism to prevent the potential future use of other harmful substances in anti-fouling systems" http://www.imo.org/Conventions/mainframe.asptopic_id=529 Even though the organisation does not actually deal with bulk cargo or passengers, it still has to abide with the same rules and Acts that the regular passenger ships have to. Supplies have to unload at all the intended ports and terminals and the loading and unloading of the supplies, their recording of entries and exits etc. would be done according to the rules of the land. "Maritime transport encompasses all forms of transport by sea, intermodal links and inland ports but has certain fundamental differences from other modes of transport. First, it caters almost entirely for the freight market, and offers no significant passenger carrying ability in the national context. Second, as it operates in an international environment, it is subject to considerable competition and economic pressure from foreign competitors." http://www.transport.gov.za/library/docs/greenp3d.html As a maritime organisation, it has to take all its decisions keeping the external factors in view. It is impossible for it to function keeping only UK laws in mind, as it has to deal with almost all the countries, their companies, their shipping industry and other connected industries, and hence, the organisation automatically comes under laws made by those countries that could be suitable only for them. But an international organisation has to find ways and means to adapt itself into those laws. Education and training of the staff, making them aware of other cultures and alien atmospheres had been of great value. It is difficult for an organisation like BMEA not to get influenced by external environment. Most of the maritime organisations try to adapt themselves as much as possible to the environments, rules and policies of other countries, without which they cannot run their business. Shipping corporations have to adhere to the rules of flag ports, terminals and high seas only. But BMEA has to abide with even the country's internal laws, as its supplies go to the off shore industries and Government agencies. It has to learn every liaison rule prevalent in that particular country, deal with Government agencies and quasi government institutions for their supplies to get approved, because it represents the interests of its members, suppliers and manufacturers in Britain. To negotiate the supplies, prices, with markets abroad, it has to have its personnel ready and trained for the job. This means a lot of communication, braving the language problem, keeping in touch with interpreters, and learning various techniques and tact while dealing with other cultures. Making bulk supplies to other countries is a matter of risk and responsibility. Unfriendly weather conditions, spreading terrorism targeting one and all, and sometimes, even pirates in the high seas, require the maritime organisations to be prepared to any eventuality and be ready to face tough situations. The old romantic shipping era has vanished with the advent of modern age and aviation. Today, the world is struggling with violent problems. Grappling with the ugly realities in the far off remote seas, could be unpleasant at times. Losing of cargo, losing of ships, vessels, drowning of the staff, contagious diseases, unforeseen calamities, eruption of war or disturbing riots off shore, abnormal weather conditions, failure of ship machinery, anything and every thing can bother the vessels, and thereupon the organisation. "In the nature of things, the business of carriage of goods by sea involves certain well-known risks; the cargo may arrive late, or in a damaged condition, or may not arrive at all, for reasons beyond the control of the carrier, such as storms on the voyage; in such events, will the carrier still be able to claim the agreed freight payment (or keep it if it has been paid in advance)" asks Hughes (1999, p.1). Company also has to deal with labour internationalism and labour institutionalism. Vessels have to follow the rules of territorial water and this had been an issue in many cases. Sometimes the laws about territorial waters are rather uncertain and vague. International conventions have been unable to arrive at an absolutely watertight solution about territorial waters. "One of the great controversies in the law of the sea has always been the permissible width of the territorial sea. The 1958 convention has no provision on the breadth of the territorial sea and a Second UN Conference in 1960 failed narrowly to agree on a compromise solution," Dixon, (2005, p.199). This has never failed to create problems and conflicts when contentious issues arise, without knowing which law applies to the current situation. Organisation has to train its staff about the territorial water rules and the connected rules of the countries. As BMEA deals with sales and services of equipments, it comes under the Sale of Goods Act and Sale Contract Act. All these international laws have to be honoured by the company while making a deal and supplying the equipments and servicing it later. "An international sale is normally, in commercial usage, a sale between a seller in one country and a buyer in another. It involves a sale contract to which more than one legal system may arguably relate, and hence, there may be some doubt as to the legal rules applicable or legal machinery to be used, should any dispute occur in relation to the contract," Lew (1990, p. 2). BMEA makes its rules according to the World Environmental and Preservation policies. There are many policies in place now trying to maintain the eco balance of the seas and preventing pollution from spreading. Sustainability is a major issue for which every country has to alter its rules, and all these rules apply to all maritime organisations as well. A single country however strong it might be cannot achieve it. "It is a simple truth: As the worlds oceans are interconnected, actions by a single state to achieve sustainability cannot reach far. More than ever trade, shipping and fisheries have become globalized. Age-old rights such as the right of free passage still constitute the necessary basis for economic prosperity while limiting the jurisdictional powers of the coastal states". http://www.lighthouse-foundation.org/index.phpid=80&L=1 Maritime organisations work under a lot of external pressure. It is not easy to keep up to date with all the laws and international rules that keep changing with international conventions, meetings and events. Anti pollution laws are many and it is one branch of law that would keep growing with the time and the vessels and carriers are expected to keep abreast with all of them and adhere to them scrupulously. Globalisation and other connected economic and financial changes have brought their own atmosphere all over the world and high seas and ports are not exempted from them. Various cultures and different regions affect maritime organisations. Mainly what has affected every sphere of trade and travel, politics and economy, tourism and leizure, is the growing strength of terrorism. This has created more tensions and maritime organisations had to face security threats in recent years. This has made it necessary to have their own security arrangements while venturing into the high seas, this being an added burden and responsibility for the organisations. They work under enormous sense of responsibility. Supplying the equipments to their right places, dealing with various Government agencies and convincing the quality and pursuing the service problems is a highly responsible job. BMEA is answerable not only to its members, but also to the manufacturers and suppliers. All the maritime organisations have great responsibility of their cargo or passengers and work accordingly. They have to fulfil their responsibilities in the framework of various external pressures of international laws, terrorism, rules, regulations, risks and security threats. BIBLIOGRAPHY: 1. Dixon, Martin (2005), Textbook on International Law, 5th edn., Oxford University Press. 2. Hughes, A.D. (1999), Casebook on Carriage of Goods by Sea, 2nd edn., Blackstone Press Ltd., Hampshire. 3. Lowenfeld, Andreas F. (1977), International Private Trade, Mathew bender, New York. 4. Lew, Julian D.M. and Stanbrook, Clive (1990), International Trade: Law and Practice, Vol. I, Euromoney Publications, London. 5. Lew, Julian D.M. and Stanbrook, Clive (1990), ed., International Trade: Law and Practice, Euromoney Publications, London. ONLINE SOURCES: 1. http://www.transport.gov.za/library/docs/greenp3d.html 2. http://www.imo.org/Conventions/mainframe.asptopic_id=529 3. http://www.lighthouse-foundation.org/index.phpid=80&L=1 Read More