AD746 Final

Tarrification

the process by which a country agrees to "convert" its quotas, import licenses, and other non-tariff barriers on specific items to tariffs

US Trade Representative

has a seat in the cabinet, represents US at all WTO meetings

Dependent agent

* Perform a variety of functions on behalf or on direction of the principle * Principle opens an office when hiring an agent (dependent) * Principle is liable to third parties * Works for one client * Hourly pay or salary

Independent Agent

* Perform general tasks but retain substantial discretion and independence * Principle do not necessarily open an office * Principle has no liability * Get paid by commission, float amount of money

States can do some regulations Examples of what states can do as regulations?

* enact restrictions related to the protection of public health * user fees for the use of port facilities (that's more of an embargo)

WTO Dispute Settlement Procedure

- Dispute mechanism and procedures attempt to avoid retaliation or "trade wars" - Have a quasi-judicial process for resolving disputes when deadlocked - Only a government can bring a complaint against another government consultations between the parties; (ii) adjudication by panels and, if applicable, by the Appellate Body; and (iii) the implementation of the ruling, (from google) Provide a legal forum for nations to resolve trade disputes. Process has more structure, security, and predictability than GATT, no longer by consensus, have a right to a panel hearing, if offending country does not comply the complainant has the right to impose duties/countervailing sanctions (from chapter summary) (that's where power ends)

indirect non-tariff barriers

- laws - regulations - rules of administrative agencies

treaty must be approved by

2/3 vote in senate has to be executed by president and approved by ⅔ of the senate House does not vote on treaties Treaties are binding

TPP (Trans-Pacific Partnership)

A trade agreement among 12 Pacific Rim countries In 2016 President Trump withdrew the US form the multilateral trading system.

fast-track authority

An expedited system for passing treaties under which support from a simple majority, rather than a two-thirds majority, is needed in both the House and Senate, and no amendments are allowed

WTO (World Trade Organization)

An international body that enforces agreements that reduce barriers to international trade; successor to the GATT Sets rules for international trade a dispute resolution

Equal Dignity rule

Both statutes and treaties are of equal importance

Commerce Clause

Commerce Clause, gives Congress exclusive power over trade activities between the states and with foreign countries. prohibit states government from taxing exports -States can not tax exports-imports

Case: Youngstown sheet vs Sawyer

Court said no. President's power to issue an order must stem from an act of Congress or the US Constitution.-President-went-too-far Brief Fact Summary. In 1952, after the employees of steel companies threatened to strike, President Truman, ordered the Secretary of Commerce to seize the Nation's steel companies. The steel companies sued.

Dole vs. Carter

Dole (the plaintiff) filed action against the President Carter to not return the crown to Hungary claim that such action was a treaty taken by president without the prior advice and consent of the senate Court denied the plaintiff's action. The agreement to return the coronation was not a treaty requiring ratification by Senate, but a valid executive agreement based on president's inherent power

advertising abroad - what are the regulations?

Every country prohibits "false" advertising State regulations on that (Very country specific) ex. Countries tend to impose tight regulation on advertising "sin" (alcohol, tobacco) or medication the disclosures are required to be "clear and conspicuous.

T/F: FCPA is designed to prevent US government officials from taking bribes?

FALSE - FCPA seek to punish bribery of foreign government official

Supremacy Clause

Generally, federal law is supreme over state law establishes that the federal constitution/ federal law generally take precedence over state laws, and even state constitutions

Grease payment

Governmental action exception; gratuity payments or governmental officials Grease payments are ok - NO materiality

Concept of supercession

Governments can interfere to protect local interests (e.g., pricing)

Supercession

Governments can interfere to protect local interests by enacting laws that supersede contractual agreements.

Banana trade wars/Europian-Economic-Community

Latin America vs European countries for putting higher tariffs on Latin America and reduced tariffs on African and Caribbean countries .Violated- MFN-Principles-WTO said could not do that

Import - exports clause

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws

Solo executive international agreement

Not in the constitution - It's negotiated and put into legal effect by the president with no congressional approval are international agreements entered into by the President without reference to treaty or statutory authority, that is, exclusively on the basis of the President's constitutional powers as chief executive and commander-in-chief

Civil cases - who handles civil / admin enforcement actions?

SEC (Securities and exchange Commission)

trade barriers (Non-Tariffs)

Taxes, quotas, and other restrictions on goods entering or leaving a country.

FTA (Free Trade Agreement)

Trade Agreement that establishes a "free trade area" between participating countries where goods moving between these countries have few or no tariffs and few restrictions.

T/F: Russia and China are permanent members of of WTO

True

T/F: Only the federal government can tax exports?

True

FCPA (Foreign Corrupt Practices Act)

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.

Second Banana case-European-communities-vs-Regime-for-the-importation-sales & distribution-of-Bananas

US want to participate as a plaintiff against European states. US wants to join Latin American countries on tariffs increase Banana case. Europeans stated that the US does not export bananas and has no issue with this and should not join. The WTO said the US can join.

TPA (Trade Promotion Authority)

Unlike treaties, such agreements only require a majority of the House and Senate to pass. Under the TPA, Congress authorizes the President to negotiate "free trade agreements - if they are approved by both houses in a bill enacted into public law and other statutory conditions are met

ad valorem tax

a tax levied on the assessed value of real and personal property tax based on the value/percentage

Advertising Regulations - rules differ by nation, but almost all have what in common? what is prohibited?

almost every nation prohibits false advertising

Criminal cases - what agency handles them?

department of justice (DOJ)

MFN (Most Favored Nation) status

every member is treated as well as the "most favored one" all MFN status trade partners must treat each other equally - best terms including lowest tariffs, etc. In US MFN is granted by Congress

Materiality Concept

impact of an omission or misstatement of info in a company's financial statements Under FCPA, companies are required to report in their accounting system any bribery regardless of how small the amount

GATT (General Agreement on Tariffs and Trade)

international agreement first signed in 1947 aimed at lowering trade barriers by reducing tariffs WTO 1994, effective 1995

Congressional-executive agreement

international agreement that is not a treaty - is negotiated by the president and approved by a simple majority of the House and Senate

Smoot-Hawley Tariff Act

legislation passed in 1930 that established very high tariffs. Its objective was to reduce imports and stimulate the domestic economy, but it resulted only in retaliatory tariffs by other nations

extortion

the practice of obtaining something, especially money, through force or threats It can be defended in trials