International Trade Disputes
Introduction
The ever increasing globalisation of markets and the increasing number of international trade agreements, have increased the likelihood of a trade dispute occurring between nations. This paper will discuss: the definition of an international trade dispute, the different types of dispute that can arise from international trading relations and the various methods in which these disputes may be resolved.
Definition of International Trade Dispute
An international trade dispute is a disagreement between two or more countries concerning the trade or sale of goods or services with each other. Trade disputes may also occur between different levels of government (e.g. state/provincial and federal) or between private parties.
Types of International Trade Disputes
The types of international trade disputes vary depending on the cause of the dispute. The most common types of disputes include:
1. Trade Disputes over Tariffs: Tariffs are taxes placed on imports and can cause a trade dispute if the countries involved disagree over the amount or duration of the tariff.
2. Trade Disputes over Subsidies: Subsidies are payments made by one country to its domestic industries to encourage certain activities. Trade disputes over subsidies can arise if one country suspects that the other country is using them to gain an unfair advantage.
3. Trade Disputes over Anti-dumping: Anti-dumping occurs when a country exports goods to another country at lower than normal prices in order to gain market share. Trade disputes can arise when countries suspect that their domestic industries are being harmed by another country’s anti-dumping measures.
4. Trade Disputes over Intellectual Property: Intellectual property refers to any type of creative work that is protected by copyright, trademarks and other forms of legal ownership. Trade disputes over intellectual property can arise when one country is suspected of allowing another country’s intellectual property to be illegally copied or used without permission.
5. Trade Disputes over Standards/Regulations: Trade disputes can arise when countries disagree over the standards and regulations that are used to govern the way goods are produced and/or distributed.
Methods for Resolving International Trade Disputes
There are a number of ways in which international trade disputes can be resolved, including:
1. International Negotiation: Negotiations allow the countries involved in a dispute to come to a mutually agreeable compromise. It is often the preferred option when there is a risk of the dispute escalating or when the countries involved have an interest in sending a message of cooperation and understanding.
2. Negotiation Assistance: Negotiation assistance is provided by organisations such as the World Trade Organisation (WTO) who can act as an impartial mediator between the countries involved. This helps to create a fair and balanced negotiation environment.
3. Arbitration: Arbitration is a form of dispute resolution that takes place in a formal hearing. It is usually overseen by a third party who will make decisions based on the evidence provided.
4. Litigation: Litigation is when a dispute is taken to court. It is used when all other options have failed, or when one country is seeking a judgement of law.
Conclusion
International trade disputes are a common part of international trade and can have a significant economic impact on all the countries involved. It is important for countries to have appropriate methods in place to deal with trade disputes in order to maintain good trading relations and promote international cooperation.
