International Commercial Relations Research Articles

The 2022 Sanction Challenges for International Commercial Arbitration and Methods of Resolving them

The subject of this study is the impact of the sanctions policy imposed against the Russian Federation in 2022 on international commercial arbitration. For that purpose, we analyse the restrictive measures that have had a major impact on dispute resolution in international commercial arbitration involving Russian and sub-sanctioned persons. An important part of the study is an analysis of current practice in this area and the difficulties arising in order to develop recommendations and possible means of overcoming them for the continuation of international arbitration in Russia and access to justice for sanctioned persons. Over recent years, international commercial arbitration has become one of the most common means of dispute resolution, not only abroad, but also in the Russian Federation. However, the international nature of arbitration makes it highly sensitive to sanctions. Since the implementation of anti-Russian sanctions, especially in 2022, it became evident that the field of international commercial arbitration faces inevitable difficulties in terms of cooperation with foreign jurisdictions and its operation in general. The impact of restrictive measures on international commercial relations cannot be overestimated, with the number of cross-border disputes only increasing, which makes international commercial arbitration more than relevant and requires new solutions to overcome existing challenges. The research leads to a number of conclusions: the 2022 sanctions have certainly affected the world of arbitration but have not put an end to arbitration institutions in general; they have led to a global reorientation towards Asian arbitral institutions and a strengthening of Russia's position as a place for arbitration; parties to arbitration proceedings are finding new and successful solutions to the restrictive measures; many foreign jurisdictions are slowly softening their policy towards arbitration.

Realization of the Interests of “Small States” in the European Union

   Over the past few years, there have been certain shifts in favor of the national agenda in the European Union. Similar divergences from the main goal of the EU are observed in the UK and Poland. The COVID-19 pandemic also revealed the mismatch between the interests of a united Europe and the national preferences of the participating countries.   The purpose of the article is to determine the possibility / impossibility of realizing the national interests of “small states” — EU members in the formation and implementation of a single community policy.   To achieve the goal, it is necessary to establish the existence of different interests of states within the EU, the possibility of the participating countries to influence the development of the policy of the Union as a whole, the role of “small states” in the process under consideration. Applying a regional approach and narrowing the study to a single country (the Republic of Latvia), as well as applying methods of analysis and comparison, the nature of the relationship between the policies of the European Union and individual countries is revealed. The experience of the Republic of Latvia has shown that the state, which is most dependent on the economy and the general policy of the union, builds its own relations with the EU, relying mainly on the interests of “donor countries”. This dynamics is also manifested in international commercial relations, influencing the state of some sectors of the economy, as well as the economic situation of individual cities. Despite some negative points, mainly related to the economic indicators of individual industries, the participating countries do not deviate from the policy of European integration. Civil society, for the most part, also chooses the opportunities provided by the European Union. The challenges that the European community faced over time are being resolved. The Government of the European Union speaks openly about the existing problems, which are also related to the solution of common problems, and tries to solve them in a timely manner and by common efforts.

Understanding Cross-Cultural Differences in Conceptualizing International Trade Patterns: A Neuroeconomic Perspective.

Neuroeconomics has been seldom used in investigating the impact of culture on international trade. This research proposes a scientific approach to investigate how cross-cultural differences contribute to the conceptualization of international trade patterns globally. International business relations are directly influenced by factors such as cultural variations which distinguish one foreign market from another. Therefore, the level of understanding these cultural differences is able to determine the success or not of business opportunities. In response to the scarcity of scientific investigation of cultural influence on international trade, the purpose of this study is to propose a neuroeconomic framework as a strategic instrument to elucidate the cross-cultural dimension of international commercial relations. Echoing this, our study uses cultural diversities and cognitive classifications established in literature to adopt a unique scientific tool for the conceptualization of international trade patterns across the world. This research establishes the cognitive mechanism of cross-cultural diversity, as a novel framework to conceptualize international trade patterns. By unveiling the cognitive process of cross-cultural diversity, this article provides an instrument to unlock trade barriers of individualism and collectivism across nations.

Possible impact of the 2019 Hague Convention on the recognition and enforcement of foreign judgments in civil or commercial matters on the grounds of international competence in Ghana

The 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters is a product of the Judgments Project of the Hague Conference on Private International Law. The Hague Judgment Convention has the advantage of providing business partners with a simple, efficient, and predictable structure with regards to the recognition and enforcement regime; as well as reducing related cost. More specifically, the convention fosters predictability and certainty in international commercial relations by enabling international commercial partners to be precisely informed of the grounds on which the decision of the court of one contracting state will be recognised or enforced in the territory of another contracting state. The Convention offers a wide range of jurisdictional filters for the purposes of recognition and enforcement of judgments from Contracting States. This article discusses the modern and innovative grounds of international competence introduced by the Hague Convention and its potential impact on the grounds of international competence for Ghana if Ghana ratifies the convention. The article recommends the ratification of the 2019 Hague Judgment Convention as it would be of enormous benefit to Ghana whose grounds of international competence when it comes to recognition and enforcement of foreign judgments seems antiquated and confined only to residence, submission and more controversially, the presence of the judgment debtor in the jurisdiction of the foreign court.

Turkey

Abstract As complex international commercial relations developed, the practice of arbitration became more popular around the world. In this context, arbitration practices on a local basis have been shaped accordingly. The purpose of this study is to give general information about the international and domestic legislation in Turkey in the field of arbitration. Within this context, it evaluates the rules to be applied to international and national arbitration proceedings in Turkey by taking into account the effect of UNCITRAL model law on the evolution of national arbitration legislation of Turkey.

International Sanctions in the Regulation System of International Commercial Relations

International Sanctions in the Regulation System of International Commercial Relations

The importance of language and culture to the growing Sino-Caribbean commercial relationship

Language and culture play a critical role in international commercial relations. Since the 19th century, the English language has undeniably held the prominent position as the global lingua franca to facilitate communication between nations. However, China’s contemporary re-emergence as an economic superpower has expanded its global influence. Consequently, awareness of Chinese culture and language is becoming important not only globally, but also in the Caribbean, where China’s economic footprint has expanded considerably in recent years. This article conceptually explores the important role of language and culture within the growing Sino-Caribbean commercial relationship. Specifically, it discusses the potential impact of language on the trade and tourism sectors, which are two key industries that drive the economies of English-speaking Caribbean small island developing states. It does this by charting the development of the English and Chinese languages as dominant languages. It then briefly looks at the current level of Chinese engagement with the region in trade and, more contemporarily, the potential of greater Chinese tourism in the Caribbean. It discusses the value of deeper cultural and linguistic understanding in nurturing and expanding these relationships. Finally, the article concludes by providing meaningful recommendations on ways to mitigate cultural and linguistic barriers in order to promote deeper Sino-Caribbean trade and tourism.

Yours is bigger than mine! Could an index like the Producer Subsidy Equivalent help in understanding the comparative incidence of industrial subsidies?

AbstractState support remains a leading cause of tension in international commercial relations. Governments see trade distortions that look like they were caused by industrial subsidies, but lack data to illuminate that state support. In the 1980s, the Organisation for Economic Co‐operation and Development (OECD) developed an index that helped countries to see the overall incidence of agricultural subsidies, initially called the Producer Subsidy Equivalent (PSE) and the Consumer Subsidy Equivalent (CSE). Are there lessons for today in the PSE approach? I try to answer that question from the standpoint of economics: how did the PSE evolve, what is it, is the concept relevant to industrial subsidies? And of politics: how was OECD able to create the tool, and do present conditions permit something similar? The PSE was a response to a shared perception of crisis. It drew on well‐established concepts in the agricultural economics and trade literatures. And it works best in a context where market power is sufficiently diffuse that a price gap between domestic and world prices can be calculated. Only some of those conditions can be met when applying the approach to concentrated industries dominated by large firms that operate in multi‐country supply chains.

A Brief Assessment of the Main Commercial Contracts under the New Romanian Civil Code

Summary From 2011 Romania has a new Civil Code. Although the government’s initiative was to unify the private law according to the model of the Italian Civil Code of 1942 by repealing the Commercial Code of 1887, the new Civil Code only succeeded in putting together civil rules and commercial rules, the latter being relocated from the former Commercial Code. Obviously, an exhaustive analysis of the new Civil Code is impossible in the frame of a short article. That’s why the author of this study tries to evaluate the new Civil Code regulation by focusing on the main commercial contracts. Some general civil rules that are traditionally applied for centuries in most of the European continental legal systems (e.g. ownership concept, warranty for defects, the buyer’s duty to pay the price etc) will be premeditatedly neglected or just shortly approached. The commercial contracts are very important in the field of the international commercial relations – even between the borders of the European Union –, when in many cases the parties agree that the national law will govern the contract. The goal of the study is to offer a brief commentary on the new institutions together with a comparative presentation of the general regulation of the main commercial agreements.

INTERNAL FACTORS THAT STIMULATE THE INTERNATIONALIZATION OF COMPANIES IN PERU’S JEWELLERY SECTOR

The purpose of this research is to make known the internal factors that stimulate the internationalization of companies in the jewelery sector. We consider the qualitative approach at the descriptive level through semi-structured interviews with twelve major exporting companies in the jewelery sector in Peru. The results of the investigation show that the most relevant internal factors for the internationalization of jewelry companies is the international experience based on the understanding of markets, foreign clients, competition, knowledge of the documents and certificates necessary for an export, international commercial relations and risks in the negotiations; Another relevant internal factor is the personalization of the product with characteristics of innovation that generates better export results and, therefore, have a competitive position, since in the international market customers consider that companies have a product with added value, innovative and competitive. Moderately relevant factors are transaction costs, firm size, and the tacit nature of know-how; while opportunistic behaviuor is of little relevance. These findings will serve to understand opportunities and limitations that companies must be aware of to undertake new internationalization projects in the jewelery sector.

Yours is Bigger than Mine! Could an Index Like the Pse Help in Understanding the Comparative Incidence of Industrial Subsidies?

State support remains a leading cause of tension in international commercial relations. Governments can see trade distortions that look like they were caused by industrial subsidies, but they lack the data to illuminate that state support. In the 1980s at the height of the farm wars the Organisation for Economic Co-operation and De-velopment (OECD) developed an index that helped countries to see the overall incidence of agricultural subsi-dies, initially called the Producer Subsidy Equivalent (PSE) and the Consumer Subsidy Equivalent (CSE). Are there lessons for today in the PSE approach? In this paper I try to answer that question from the standpoint of economics: how did the PSE evolve, what is it, is the concept relevant to industrial subsidies? And of politics: how was OECD able to create the tool, and do present conditions permit something similar? The brief answer is that the PSE was a response to a shared perception of crisis, but it was pushed by finance not trade or agricul-ture ministers. It drew on well-established concepts in the agricultural economics and trade literatures. And it works best in a context where market power is sufficiently diffuse that a price gap between domestic and world prices can be calculated. Only some of those conditions can be met when applying the approach to concentrat-ed industries dominated by large firms that operate in multi-country supply chains.

The Hague Conference on Private International Law's Proposed Draft Text on the Recognition and Enforcement of Foreign Judgments: Should South Africa Endorse it?

AbstractThe Proposed Draft Text on the Recognition and Enforcement of Foreign Judgments forms an integral part of the ambitious Judgments Project of the Hague Conference on Private International Law. In particular, this instrument endeavours to foster predictability and certainty in international commercial relations by enabling litigants to be accurately informed in advance of the circumstances in which the decision of the court of one contracting state will be recognized or enforced in the territory of another. The endorsement of the Draft Judgments Convention could accordingly prove advantageous to countries like South Africa, whose private international law on the recognition and enforcement of foreign judgments seems archaic and confined to a narrow set of precepts. This article identifies the loopholes in the country's policy and practice on the subject, and demonstrates the manner in which the Draft Judgments Convention could plausibly address these lacunae.

Free Trade in Theory and Policy: Contemporary Challenges

Abstract Free trade denotes a state of international commercial relations premised on governments’ restraint from using policy instruments meant to favor indigenous industries against foreign competitors. According to the conventional trade theory advocated by classical and neo-classical thinkers, free trade makes little economic sense failing nations’ tendency to specialize based on comparative advantage, a concept with high persuasive influence despite the elapsing of time. Even though the comparative advantage rule has seldom been questioned per se, the free trade concept has been fiercely disputed and not infrequently, bashed. Nations’ involvement in international trade often follows patterns that do not fit theoretical models but attempt to respond to circumstantial interests, most often the need to protect poorly competitive industries. In common parlance, free trade has had both proponents and enemies.

Íñigo de Loyola y los mercaderes castellanos del Norte de Europa. La financiación de sus estudios en la Universidad de París

Estudio documental del contexto económico en que se desenvolvió la acción del estudiante Ínigo de Loyola para recaudar fondos en las plazas mercantiles del norte de Europa a fin de financiar sus estudios en París. El autor subraya la importancia de no reducir esas actividades a mero aspecto de la vivencia de la humildad y la pobreza del santo, sino fruto además de las relaciones mercantiles internacionales de la familia de Ínigo, en parte como aspecto de la economía vascongada de su época.

The Manila Galleon, Macao and international maritime and commercial relations, 1500–1700

Formal and informal trade were key elements in the establishment of global connections. Using data collected from Portuguese and Spanish archives, as well as the secondary literature, this article examines the early modern Southeast Asian Iberian communities of Macao and Manila, their weakness and resilience. Far from the centres of political decision-making they relied on their own resources and abilities to manage maritime connections with China, Japan and Spanish America through the voyages of the ‘Macao Ship’ and the ‘Manila Galleon’. The rarely mentioned intervention of the Macanese traders in the Manila Galleon route constitutes a central part of this research.

The Main Characteristics of the Hague Principles

The article considers legal issues of the Hague Principles on the choice of law in international commercial contracts. The experience of approving the Hague Principles is unique in the long-term practice of the Hague Conference on Private International Law in connection with the fact that for the first time it approved an international instrument in the form of a set of advisory rules. Regulation of international commercial relations by the non-state instruments is frequently implemented nowadays. The article determines the criteria for the non-governmental instruments as the basis for their recognition as a control for cross-border relations.

EFECTOS DEL TRATADO DE LIBRE COMERCIO ENTRE COLOMBIA Y ESTADOS UNIDOS EN TORNO AL CONTRATO DE FRANQUICIA INTERNACIONAL

<p>El contrato de franquicia internacional es quizás el contrato de colaboración empresarial más importante en el desarrollo actual de los negocios, pues les permite al franquiciante llevar su modelo de negocio a otros países sin una alta inversión y al franquiciado, realizar una inversión en un negocio, cuya probabilidad de éxito tiene respaldo en la propiedad intelectual licenciada por el franquiciante. Sin embargo, su regulación tanto en el derecho interno como en el derecho del comercio internacional ha sido escasa. Con la entrada en vigencia del Tratado de Libre Comercio (TLC) entre Colombia y Estados Unidos, el 15 de mayo de 2012, se espera un aumento en las oportunidades de negocios y que, en este contexto, el contrato de franquicia se convierta en uno de los instrumentos jurídicos más usuales en las relaciones comerciales internacionales para materializar estas oportunidades. Así, ante la falta de regulación vinculante del contrato de franquicia se hace imprescindible analizar las implicaciones jurídicas que tendrán las reglas fijadas por el TLC entre Colombia y Estados Unidos en este tipo de contrato.</p>

Новый Примирительный регламент Международной торговой палаты: в ожидании спроса на медиацию

Russian businessmen are used to include arbitration clauses in their foreign trade agreements. Some of these clauses refer the disputes for settlement under the rules of the foreign arbitration centers, including Rules of Arbitration of the International Chamber of Commerce. While arbitration is one of the best known and widely applicable dispute resolution method, recent trend consists in the growing use of conciliation and mediation procedures for settlement of complex disputes arising between the participants of international commercial turnover. Mediation clauses together with multilayer and combined dispute resolution clauses become part of commercial reality where success and economy depends on the ability of the party to a commercial contract to quickly and correctly analyze the available solutions, consciously chose, correctly formulate and apply the dispute resolution method suitable for the particular dispute. In many cases mediation procedure allows the parties to settle their commercial dispute in the most efficient way. From this prospective awareness of the recent practices and new rules of the leading ADR centers becomes one of the key factors for successful activities on the field of international commercial relations. The ICC Mediation Rules are in force since January 1, 2014. This document replaces the ADR Rules which were in force from 2001. Author analyses the provisions of the new document from the prospective of its use for settlement of international commercial conflicts.

The Status of the Foreign Arbitral Award According to the Albanian Legislation Provisions in Light of the New York Convention: Formal and Substantial Issues

The role played by foreign investments for the integration and economic development of Albanian commerce in European area and beyond is undisputed. These investments, as well as other commercial relationships between national and foreign businesses, need an attractive legal environment, especially in regard of legal certainty. There is the need, essentially, for guaranties in regard to the rules that assure a fair treatment and the eventual dispute resolution by reliable legal instruments. It is a priority therefore to foresee modern alternative dispute resolution mechanisms and their effective use. Arbitration, especially the international arbitration is considered the most important legal instrument. According to these developments the Albanian legislation should modernize some aspects of the international arbitration institute, which is widely used in international commercial relations, in example recognition and enforcement of foreign arbitral awards. In this article is our intention to discuss, in a comparative light, some important issues in Albanian legal framework, compared to the New York Convention provisions, concerning the arbitral award status and obstacles for its recognition and enforcement in the Republic of Albania.

The ‘Arab Spring’ and Arab Approaches to International Arbitration

Arab countries have taken a number of steps over the years to strengthen the role that arbitration can play in their international commercial and investment relations. These include the adoption of liberal laws on arbitration, accession to international conventions on arbitration and the establishment of regional arbitration centres. Both the arbitration centres and the liberal arbitration laws are likely to be durable despite the changes of regime. Problems could be expected, however, if new governments begin to lose sensitive cases submitted to Western arbitral institutions, including the International Centre for Settlement of Investment Disputes (ICSID). Certain measures, if taken by ICSID, could nevertheless bolster confidence in the Arab world.