INTERNATIONAL TRADE RELATIONS

– Dr. Stuart Malawer -

ASSIGNMENTS

[The items marked with * are required reading.]

CLASS I: Introduction & World Trade Organization – Pt. 1 (Global Trade & WTO).

2010 Update on Global Trade & Backdrop for the WTO Today.

* "Global Trends 2025 -- A Transformed World." (National Intelligence Council, 2008) (Report).

"Protectionism -- Obama & Tire Tariffs." Wall Street Journal editorial ( 9.15.09).

* "From Doha to Bretton Woods II." Foreign Affairs (Jan. / Feb. 2009).

Financial Times page on "The New Protectionism."

Two cartoons -- "Globalization Goes into Reverse" and "Belt Tightening."

These articles indicate the great slowdown in global trade recently and the rise of "Economic Nationalism" (protectionism), at least the fear of it globally. "All Around the World, Trade is Shrinking." New York Times (2.28.09) and "The Dangers of Turning Inward." Wall Street Journal (March 1, 2009).

The World Bank has identified many newer protectionist measures. "Protectionist Trends." World Bank -- Trade Notes (March 2, 2009).

"A Protectionist President." Wall Street Journal (Sept. 15, 2009).

Introduction to Global Trade & the WTO.

o ** Sourcebook (Malawer): ”Overview of WTO System & WTO Litigation.” Malawer 2-107.

Lamy, “Place of WTO Law in International Legal Order.” (2006). Malawer 2-15.

Lamy "WTO & Global Governance. " (2006) Malawer 16-25.

Lamy, "Global Governance -- Lessons from EU -- Rule of Law." WTO News (Nov. 9, 2009).

Update -- "Global Governance (WTO / IMF), Multilateralism & the Financial Crisis." Financial Times (12.01.09).

*"Lamy -- Trade & Human Rights." WTO News (January 13, 2010).

Lamy, "The Place of the WTO in the International Legal Order." (2008).

Lamy, *"Global Economic Governance." (2008).

Lamy, “Terrorism & Global Trade Rules.” (Speech by WTO D-G Lamy 9.8.07).

WTO Groupings (Diagram 2008).

* Map of DSU Disputes (2009).

o ** Video: “From GATT to WTO – Achievements & Challenges.” (online video). (For outline click here).

o ** Malawer, “Trade Agreements & Uruguay Round,” "U.S. Law & Global Trade." (2009) (PowerPoint) (Basic WTO Agreements -- #50, # 52, # 59 - # 63).

o "Korean protests against import of U.S. Beef." (2008).

o “G-8 Riots in Geneva.” (June 2003).

o “Terrorism (World Trade Center 9/11).”

o “Cancun Ministerial (Korean Farmer).” (September 2003).

o “Cancun Ministerial (Cotton).” (September 2003).

o “Hong Kong Ministerial (WTO).” (December 2005).

CLASS II: World Trade Organization – Pt. 2 (Trade System & Doha Trade Negotiations).

o ** Sourcebook (Malawer): ”Selected WTO Agreements.” Malawer 282-443.

o ** Malawer, “Trade Agreements & Uruguay Round,” "U.S. Law & Global Trade." (2009) (PowerPoint) . #64 - #65 (Basic WTO, Basic Principles -- Most Favored Nation, National Treatment -- & Doha Round); #24 - # 26 (A/D, CVD & Safeguards).

o * Lamy, " 'Geneva Consensus': Trade & Development." (10.30.06).

o **Video: “Ministerial Conference – Singapore: Global Challenges.” (For outline click here).

o ** “DOHA Ministerial Declaration.” (November 20, 2001). Malawer 82-92.

o ** Video: “To the Heart of the WTO (Brazil & Norway).” (January 2003). (For outline click here) (Online video).

o “10 Benefits of WTO Trading System.”

o “10 Common Misunderstandings.”

o WTO Website (Dept. of State Information Office.)

o Agricultural Trade Negotiations (Foreign Agricultural Service, USDA)

o * "From Doha to Bretton Woods II." Foreign Affairs (Jan. / Feb. 2009).

CLASS III. World Trade Organization – Pt. 3 (Dispute Resolution System).

[Teams & Topics to be Assigned.]

o ** Sourcebook (Malawer): ”Selected Articles” (Five Lessons & 10-Year Review) Malawer 213-247; “DSU Agreement” Malawer 308-327 (Articles 3, 19, 21, 22) .

o * Video: “Solving Trade Disputes.” (For outline click here) (Online video).

o * Map of DSU Disputes (2009).

o **Malawer, "World Trade Organization & Dispute Resolution." esp. # 7 - 13, # 37-41 (2009). (PowerPoint).

o **Malawer, "WTO Litigation & Consultation -- 10 Years of Experience." (July 2005). (PDF version).

o ** Malawer, "U.S.-China Litigation Offensive in the WTO" (2007). (PDF version).

o ** Lawrence, “The U.S. & the WTO Dispute Settlement System.” (Council on Foreign Relations 2007).

o Recent statistics from the WTO / AB. AB Annual Report for 2009 (Feb. 2010).

o * “EU & the DSU.” (EU site).

o Review of dispute settlement for 2009. "Dispute Settlement." 2010 Annual Report (Chapter 4) (2010).

o Note on NAFTA Dispute Settlement:

o USTR website for NAFTA Dispute Settlement.

o U.S. State Dept. website on NAFTA Chapter 11 disputes.

o NAFTA dispute settlement site.

o Official Website: Free Trade Area of the Americas (FTAA).

o Updates:

o Good one-page summaries of WTO cases. WTO Dispute Settlement: Case Summaries (WTO 2008).

o See recent 2008- 2009 decisions involving the United States and China concerning auto parts, enforcement intellectual property rights and entertainment copyrights. See also recent cases in favor of Brazil (Sanctions), U.S. (Airbus) and recent filing by China (U.S. Tires Tariff). (News Page)

o The WTO is now 15 years old and has had 400 cases filed with the DSU. A good review of the data is provided by the WTO. "WTO -- 400 Disputes." WTO News (11.6.09).

o The first Section 421 case (China Tire) doesn't really portend a return to Smooth-Hawley, but if unemployment keeps rising we may see more of these type of actions. "Broken Promises." Financial Times (11.9.09).

o The AB has rejected China's appeal and ruled in the favor of the United States in the dispute over import of publications and audiovisual products. "Appellate Body Rules in U.S. - China Dispute." WTO News (December 12, 2009). (Full report).

CLASS IV. WTO – Pt 4. (DSU Continued).

o ** Sourcebook: ”Summary of WTO Litigated Decisions.” Malawer 443-675; "Edited WTO Cases." Malawer 788 - 890; "News of WTO Cases." 2001-2006. Malawer 892- 1039.

o **Malawer, "World Trade Organization & Dispute Resolution." #42 - #49 (basic) and # 50 - # 81 (practice) (2009). (PowerPoint).

o * Research Note –

WTO Map of Disputes. (WTO web page).

*WTO -- Dispute Settlement.

*[List of all DSU Cases & Summaries.]

*WTO Dispute Settlement: Case Summaries (WTO 2008).

"Update of WTO Dispute Settlement Cases" (Updated by the WTO Secretariat periodically).

WTO -- NGO Papers Received (WTO).

* Update -- Data on WTO Cases (2.23.09).

* UNCTAD Project on Dispute Settlement -- World Bank (ICSID), WTO, WIPO, Int'l Commercial Arbitration, Regional ( Mercosur, NAFTA, ASEAN).

o * Note –

o Litigation in the WTO as supplanting negotiations (when they fail) is criticized by some as "jurisprudential overreach" -- as well as "investor-state litigation" under other treaties concerning direct investments. "How Lawsuits are Coming to Dictate the Terms of Trade." Financial Times (3.20.2007).

o * "Coherence -- WTO Dispute Settlement Panel Discussion ." 1-10 (2007 Public Forum 2008).

o * "China, Rules on Global Trade (WTO & IMF)." New York Times (March 16, 2010).

CLASS V: WTO – Pt. 5 (Selected Issues, E-Commerce & Outsourcing.)

Foreign Perspectives: China, EC, India and Japan..

Sourcebook (Malawer): Malawer 1040-1203.

Dumping; Subsidies; Safeguards.

o ** Sourcebook (Malawer): ”Selected Articles -- (Global Governance & E-Commerce). Malawer 239-246, 251 -260; “GAO Reports (China, Doha Round).” Malawer 675-683, 739-754.

o “Antidumping – Third Rail,” Foreign Affairs (Nov. – Dec. 2005).

o The WTO has issues reports on antidumping duties. The EU initiated the highest number of new cases for the last six months of 2006 and China remains the target of the most new investigations. "WTO News Release -- Antidumping -- Initiations & Final Actions." (June 11, 2007). A 2008 WTO study found a surge in new antidumping actions globally. WTO Press Release (10.20.08). Most recent report found 17% increase in investigations with India bringing the most and China being the target of the most. WTO Press Release (May 7, 2009).

o The number of new safeguard investigations were 5 for January 2008 - November 2008. The number had peaked in 2002 with 34. The investigations were initiated by Brazil, Egypt, Indonesia, Philippines and Turkey. India has initiated the most with 15. "Report Decline in Safeguard Investigations." WTO News (11.17.08).

o EU Antidumping Regime. EU Trade Issues website.

o "China Files WTO Complaint Against EU for A/D as to Iron & Steel Fasteners." (8.3.2009).

E-Commerce & Global Trade.

o “WTO & E-Commerce.” (WTO E-Commerce website).

o Malawer, “Global Governance of E-Commerce: Recent Developments.” (2001).

o Malawer, “Internet Commerce & Trade Policy.” (1999).

o ** Malawer, "E-Commerce & Global Trade." esp. # 10, # 13, 17-19, 24, 26 (2008) (PowerPoint).

o "DOHA Declaration & E-Commerce Mandate." (2001).

o Note: EU trade issues.

o EU – Trade Issues.

o EU-WTO Relations.

o EU & Trade Rules.

o EU External Trade – Home Page

o * EU PowerPoint--"The European Union Trade Policy." (EU, October 2006).

o Note: U.S. Trade Agencies.

o U.S. International Trade Commission

o Dept. of Commerce --- International Trade Administration (Import Administration)

o United States Trade Representative (USTR).

o Note: International institutions.

o “International Trade Centre (WTO –UNCTAD).”

o WIPO: Arbitration & Mediation.

o WIPO: Domain Name Disputes.

o *ITU Introduction (About the ITU).

o OECD - Organization.

o International Chamber of Commerce (ICC)

o Millennium Development Goals (WTO, ITC & UNCTAD).

* Note: Global Outsourcing.

o * Blinder, "Outsourcing." (Foreign Affairs March - April 2006).

o *Offshoring: U.S. Semiconductor and Software Industries Increasingly Produce in China and India (GAO Sept. 7, 2006).

CLASSES VI – VII: [ Team Presentations– WTO / DSU Cases: Recent Cases. ]

CLASS VIII: … [Mid-term Exam.] …

CLASS IX: U.S. Law -- Constitutional Law -- Role of Congress & President in Global Trade.

· ** Malawer, “Trade Agreements & Uruguay Round,” "U.S. Law & Global Trade." (2009) (PowerPoint) (Slides # 47 - # 53– Basic U.S. Law -- Constitution & Int'l Agreements).

· U.S. Constitution. (Constitution Edited.)

· Consumers Union v. Kissinger (DC. Cir. 1974). ("Separation of Powers .... Congressional Authority .... Delegation of Legislative Power.... Executive Action ....Voluntary Restraint Arrangements").

· *United States v. Curtis-Wright Export Corp. (S. Ct. 1936). ("Separation of Powers ... "Delegation of Authority ... Foreign / Domestic Powers.... Role of Executive ...'One Voice' ").

· *Burma Trade Sanctions Case (S. Ct. 2000). ("Federalism ... Implied Preemption").

· *Youngstown Case (S. Ct. 1952). (Delegation of authority – three-part approach.)

· *Malawer, "State Trade Sanctions." (PowerPoint 2007).

· *“Fast Track” & Trade Agreements.” Malawer, "Fast Track & Trade Agreements.” U.S. Law & Global Trade Slides # 54 - #58 (PPt). (Click here) .

· States have a significant role in global trade especially for local economic development .... State International Development Organizations.

· States and International Trade (Exports). WTO Website.

· Internationally-owned Companies in Virginia (2010).

CLASSES X: U.S. Law – Extraterritoriality: Global Antitrust -- Global Cartels & Predatory Pricing.

· *United States v. Aluminum Co. of America 148 F.2d 416 (2d Cir. 1945) (“The "Alcoa Case").

* *Malawer, “Global Antitrust.” # 1-17, 20-26, 37 (2010). (PowerPoint).

United States.

· Link to U.S. Dept. of Justice Antitrust Division (Click here).

· " International Advisory Committee."

· International Antitrust Documents (International Division).

Foreign Competition Rules.

q * “Competition Policy & WTO.” (Click here).

q * Link to International Documents from the Antitrust Division of the U.S. Dept. of Justice. (Click here).

q Links to national antitrust offices worldwide. (Click here).

q “International Competition Network. (ICN)”

q Database of national competition laws. (Click here).

q * OECD & Competition. (Click here).

q UNCTAD & Competition Policy. (Click here).

Recent Developments.

q An executive for Hitachi was indicted in his role of global price-fixing for LCD panels sold to Dell. Previously Hitachi plead guilty. "Hitachi Executive Indicted for LCD Price-fixing." DOJ Press Release (March 31, 2009).

q China has aggressively applied extraterritorially its new antitrust regime concerning mergers and takeovers of Chinese firms, by requiring foreign divestures. "The People's Police (Panasonic Case)." Financial Times (11.30.09).

CLASSES XI: U.S. Trade Law – Extraterritoriality: Global Mergers, National Security, Export Controls, Trade Sanctions, Corrupt Practices & Foreign Boycotts and Taxation.

· **Malawer, "Extraterritoriality: Export Controls, Trade Sanctions & Governance.) " U.S. Law & Global Trade (PPt) Slides # 5 - # 6, # 12 - # 14, # 17-# 19, # 38 - # 44). (Click here).

· * Malawer, “Global Mergers & National Security.” Virginia Lawyer (December 2006).

· **Malawer, "Global Mergers & National Security." #2, #40 - # 50 (2010) (PowerPoint)

o "Foreign Investment National Security Act." (July 2007).

o “National Security Reviews.” (GAO March 23, 2007).

o *Committee on Foreign Investment into the U.S. (CFIUS) & Exon-Florio.

· Export & Reexport Controls.

q Basics of Export Controls. (BIS) (2005).

q Reexport Controls (2003).

q Export Enforcement.

o Trade Sanctions & Terrorism.

o *Office of Foreign Asset Control (Treasury) – Trade Sanctions.”

SEC -- Link of Firms & State Sponsored Terrorism.

o *Treasury Sanctions. (List of Sanctions).

o U.S. Dept. of State -- State Sponsor of Terrorism.

o * “Economic Sanctions, Reconsidered” (2007) (“Conclusions”).

· Financial Transactions & Counterterrorism.

o * U.S. Dept. of Justice, National Security Division.

o Terrorism & Financial Intelligence (Treasury Dept.)

o U.S. Government Links (Terrorism)

o U.N. Links (Terrorism).

Global Tax Issues -- U.S. World wide Taxation System, Tax Deferral, Tax Havens & Transfer-Pricing.

* OECD programs (tax havens, model tax convention, taxation of bribery, exchange information and transfer-pricing guidelines). The OECD views taxation as integral to trade and investment and impacts economic development and transactional flows. The OECD produces model treaties and standards to be voluntarily adhere to by states that normally require adoption by states as international obligations and as national legislation. This involves both creating international obligations and "harmonizing" national legislation.

The area of international accounting known as "transfer-pricing" is again being looked at closely with multination corporations since it is used to avoid taxation. "Tax Enforcers Intensify Focus on Multinationals." New York Times (Jan. 5, 2010).

Issues concerning taxation of global multinational corporations are increasing as these corporations increase their global operations. "Global Strategies & IBM." New York Times (4.20.10).

· * Antiboycott Legislation & Foreign Corrupt Practices Act .

* US Dept. of Justice & Foreign Corrupt Practices
* OECD Convention on Combating Bribery (1999).
* U.N. Convention against Corruption (2005).
World Bank Corruption & Governance.
Transparency International.
Corruption Index (2005).

· Updates:

*There is a German-Russian investigation of bribery by H-P via its foreign subsidiaries concerning computer sales to the prosecutor's office for the Russian Federation. The SEC is monitoring these investigations for possible civil actions. "H-P Executives Face Bribery Probes." Wall Street Journal (4.15.2010).
* The U.S. Dept. of Justice has announced that Daimler has agreed to a fine of $185 million to settle charge of corrupt practices (bribery). This follows recent fines against BAE Systems and Siemens $1.3 billion . "DOJ Plays European Contract Card." Financial Times (3.26.10).
* Credit Suisse has agreed to a $536 million forfeiture for violating the International Emergency Economic Powers Act (IEEPA) in arranging financial transactions with Iran and others in violation of financial trading sanctions. This is the largest ever under IEEPA. "Credit Suisse Agrees to Forfeit $536 Million for Violation of IEEPA." USDOJ News (12.16.09).
G. E. admits violation of Foreign Corrupt Practices Act . SEC News Release (July 27, 2010).

q Note on Foreign Direct Investment into the U.S. & U.S. FDI Abroad.

· U.N. Principles for Responsible Investment (PRI) (ESG - environmental, social and corporate governance issues). Joint project by UNEP Finance Initiative with the U.N. Global Compact. For private sector entities to adhere to in investment decisions.

CLASS XII: U.S. Trade Law: ITC & USTR -- Import Relief Actions & Unfair Practices / Intellectual Property Cases & Market Access ( §301).

o ** Sourcebook (Malawer): Malawer -- 1205 - 1290. Especially -- ”Overview of U.S. Enforcement” (China Trade, 2006 Trade Policy, 2005 Special 301, 2006 President Report, Subsidies Report, NETBarriers.)”

Malawer: 1079-1097, 1205-1220 (China trade).

o ** Malawer, “Import Relief Legislation, Retaliation & Trade Sanctions,” U.S. Law & Global Trade. (PPt 2010) (Slides # 21 - # 37) (Click here).

o Enforcement by the USTR (USTR web page).

**International Trade Commission -- Import Remedies (Antidumping/ Subsidies / Global / Special Safeguards) .and intellectual property (§ 337).
**International Trade Administration, U.S. Dept. of Commerce website: Import Administration, Trade Remedy Compliance, Market Access & Compliance.
Global Antidumping Database (World Bank).
* USTR Enforcement (§ 301).

o **“Statutory Provisions Related to Import Relief.” (1998) .

· Note on Trade Barriers:

· ** 2010 National Trade Estimate (NTE) (by USTR).

· ** "2010 Trade Policy Agenda / 2009 Annual Report." (20109) (United States Trade Representative).

· "2009 Section 1377 Telecom Review." (USTR).

· “Japan’s Report on Trade Barriers.” (“Report on the WTO Consistency of Trade Policies by Major Trading Partners”) (Japan’s Ministry of Economy, Trade & Industry) (2009).

· China -- Foreign Market Access Report (MOFCOM 2005).

· *Trade Compliance Center (Dept. of Commerce).

· Anti-Counterfeiting & Trade Agreements are in the process of being negotiated by the USTR. U.S.T.R. website for ACTA.

· Note on U.S. Court of International Trade (USCIT), DOC & ITC.

o *Official website of USITC (import transactions).

o International Trade Administration of the U.S. Department of Commerce.”

o U.S. International Trade Commission.

o USTR Office. -- Enforcement.

o Export Promotion. (Click here).

o *“DOC / Chief Counsel for International Commerce.”

· Additional:

· *Good legislative summary and source material for all trade laws: "Overview and Compilation of U.S. Trade Statutes" (2003) (House Ways & Means Committee).

Note on U.S. Tariff Schedule -- U.S. Harmonized Tariff Schedules (USITC -- Tariff       Information Center).

Export Promotion -- Federal & State.

* USITC Study on SME & U.S. Exports (USITC January 2010).

** "Ron Kirk on SME & Exports." (CNBC Video 1.22.10).

State Offices -- Virginia Economic Development Partnership.

Recent Supreme Court Case on Antidumping (2009) -- The U.S. Supreme Court ruled that antidumping legislation applies only to import of goods and not to service contracts.   U.S. v. Eurodif (S. Ct. January 26, 2009).

Update:

President Obama imposed a tariff surcharge as a safeguard measure on Chinese imported tires (under provisions adopted pursuant to the legislation concerning China's accession to the WTO in 2001) and in furtherance of the International Trade Commission's ruling. "China Strikes Back on Trade." Wall Street Journal (September 14, 2009). USITC Determination (June 18, 2009).

China has imposed new antidumpoing duties on U.S. imports to China (Nylon). This demonstrates that China is emulating the U.S. enforcement and is "creeping protectionism" and shows the weakness of an "enforcement-centered trade policy. "The Cost of Trade "Enforcement." (Editorial) Wall Street Journal (10.23.09).

** Wall Street Journal editorial criticizes a newer tariff war emerging in response to U.S. restrictive trade practices (antidumping). "World Tariff Wars." Wall Street Journal (April 9, 2010).

*The Dept. of Commerce has authorized antidumping duties on the import of Chinese oil pipes. This is one of the largest dumping decisions concerning Chinese imports. "U.S. Sets Tariff on Chinese Oil Field Pipes of up to 99%." Washington Post (April 10, 2010).

CLASS XIII: Bush Trade Legacy, Rules-Based System, Trade & Financial Crisis, Obama's Trade Policies.

U.S. Trade Policy: President Bush’s Trade Legacy & Obama's Agenda.

**President Obama -- Video on Export & Trade Promotion ("National Export Initiative') (March 2010).
- Export Trade & Job Report (ITA 2010).
* 2010 Trade Agenda (Obama).
* "U.S. Trade Policy in Flux." (2009) (Clinton, Bush & Obama policies).
Bush trade legacy particularly in concluding new bilaterals and litigating new DSU cases. "Bush Trade Legacy & New USTR." USTR News Release (12.20.08); "Bush Administration Trade Accomplishments." FACTS (USTR December 2008).
Review of President Bush's trade policies in the Trade Agenda Review (USTR 2008).

Global Financial Crisis & Globalization.

Director-General's Lamy assessment of trade and the global crisis -- protectionism has been held at bay. " "Overview of Developments." (WTO Nov. 18, 2009).
The G-20 Final Communique (London Summit) contains various provisions concerning financial regulation, the Financial Stability Board, OECD tax haven secrecy / sanctions, protectionism, trade / investment promotion, and the WTO. "Final G-20 Communique -- Global Plan for Recovery and Reform (London Summit)." (April 2, 2009). See, OECD, Standards for Exchange of Tax Information (OECD Website 2009)
The World Bank has identified many newer protectionist measures. "Protectionist Trends." World Bank -- Trade Notes (March 2, 2009).