Union Free Trade Agreement Research Articles

The European Union's Free Trade Agreement with New Zealand: Motivations and Implications

The European Union's Free Trade Agreement with New Zealand: Motivations and Implications

Article: The Concept of the Seat in International Arbitration: Unlocking the Judicial Challenge of Interpretation of Conflict of Laws

The continuing growth of international commerce has inevitably led to a situation where more and more countries, via their state entities and private companies, find themselves parties in disputes to be resolved through international arbitration. In Africa, particularly following the African Union Free Trade Agreement of 2018, the growth in cross-border and international investment and the maturity of the transaction landscape has led to a proportionate increase in dispute resolution proceedings. Sharore (O. Shasore, Nigeria. ‘The Seat’ of Arbitration – Approach to Arbitral Proceedings, Mondaq Africa Law Practice (2018)) argues that this activity arises from the interplay among relevant and applicable laws, the arbitration agreements, and the conduct of the proceedings. In this context, the arbitration ‘seat’ is especially important because previous studies have found that the reasons for preferring any one seat over others are strongly related to observed judicial attitudes toward arbitration and the legal infrastructure in that jurisdiction (M. T. Birgonul et al., Comparison of an Emerging Seat of Arbitration and Leading Arbitration Seats and Recommendations for Reform, 10(1) J. Legal Aff. & Disp. Resol. Eng’g & Reconstruction (2018)). In India, for instance, despite the country’s importance as a juridical seat of arbitration given under the 1996 Act, the jurisdiction of the courts over arbitral proceedings has remained with the civil court and high court. Considering international arbitration in general, the conflict between juridical seat and court jurisdiction has persisted because the roles of arbitral seat and venue (as decided by conflict of laws) have not been properly distinguished (Duvva Pavan Kumar, The Viewpoint: Seat of Arbitration v. Territorial Jurisdiction – Dichotomy Continues (2020), https:// www.barandbench.com/view-point/seat-of-arbitration-vs-territorial-jurisdictiondichotomy- continues (accessed 4 Mar. 2021)). This article examines how, in the absence of a clear and unambiguous clause specifying applicable law, the Nigerian courts and indeed other courts have adopted a seat-driven approach to resolving these difficulties. In conclusion, the article outlines the room for improvement that may exist.

Elimination of Child Labor in Vietnam's New Generation of Free Trade Agreements

As of March 2021, Vietnam negotiated and signed the new generation of Free Trade Agreements (FTAs), consisting of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the European-Vietnam Free Trade Agreement (EVFTA), and the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA). One of the critical issues of these agreements is non-commercial provisions, especially commitments to the elimination of child labor. This study aimed to examine the implementation of the commitment to eliminate child labor in the new generation of FTAs under the principle of pacta sunt servanda and the government's responsibility to comply with international treaties according to the 2013 Constitution. Based on the obligations arising from international treaties, Vietnam must comply with all commitments agreed upon as a state member. As a result, it is necessary to implement suitable solutions to implement these commitments properly, especially the elimination of child labor, according to the three mentioned FTAs. By using comparative and evaluated methods, this study analyzed and commented on the similarities and differences between the Vietnam labor legal system and these three agreements on eliminating child labor. This study indicated relative compatibility between regulations in three FTAs and the Vietnamese legal system. Subsequently, there is a need to improve the effective implementation of these commitments by amending the definition of children, working hours, and classifying violations against the law regarding the employment of workers under 16 years old of coercive labor into the group of crimes and criminal liabilities to commercial legal entities.
 KEYWORDS: Child Labor, Free Trade Agreements, Vietnam.

Impact of the Vietnam – Eurasian Economic Union Free Trade Agreement on the trade between Vietnam and Russia

The paper is to assess the impact of the Vietnam – Eurasian Economic Union (EAEU) free trade agreement on trade between Vietnam and Russia after the agreement comes into effect. The study uses a structural gravity model based on sector-level panel data between Vietnam and EAEU countries from 2001 to 2019. The number of observations obtained is 5,386 observations forming a non-repeating pattern unbalanced, to assess the impact of this agreement. The study finds evidence of a positive impact of the agreement and tariff reduction on Vietnam's trade with Russia and EAEU countries. From there, the author suggests some solutions to promote trade between Vietnam and Russia.

And So It Begins: Trade and Sustainable Development Recommendations by a Panel of Experts under a European Union Free Trade Agreement

And So It Begins: Trade and Sustainable Development Recommendations by a Panel of Experts under a European Union Free Trade Agreement

The enforceability of the trade and sustainable development chapters of the European Union's free trade agreements.

Since 2011, the European Union’s (EU) free trade agreements (FTAs) include a Trade and Sustainable Development (TSD) chapter which provides for environmental and labour commitments. Nevertheless, the ratification and implementation of these commitments remain insufficient. It is therefore essential to analyse whether the EU has become more ambitious in enforcing the TSD chapter. To analyse the chapter’s enforceability, the EU’s FTAs with South Korea, Canada and Japan have been compared. The comparative analysis was based on three elements: the labour and environmental commitments, institutional mechanisms and the enforcement procedure. Concerning the latter, the ongoing EU-Korea dispute settlement case over workers’ rights in South Korea is the leading example. Until the Commission reveals more assertive enforcement plans, it can be said that the EU has not become more ambitious in enforcing its TSD chapter. Since no major changes were detected in the comparative analysis, several interviewees proposed enforcement mechanisms.

The computable general equilibrium analysis of the reduction in tariffs and non-tariff measures within the Korea-Japan-European Union free trade agreement

The trilateral Korea-Japan-EU FTA with the removal of tariffs can contribute to the increase GDPs of Korea, Japan, and the EU. The reduction of NTMs gives more benefits from the Korea-Japan-EU FTA. In particular, trilateral Korea-Japan-EU FTA with the reduction of both import tariffs and NTMs can give the larger increases in Korea, Japan and the EU’s GDPs, exports, and imports. Furthermore, the Korea-Japan-EU FTA also provides the positive welfare effects to all participating countries such as Korea, Japan the EU. And it can also contribute to increase the whole world’s welfare level. Thus, the Korea-Japan-EU FTA will be a win-win FTA strategy not only to Korea, Japan, and EU but also to the global world.

Mind the compliance gap: managing trustworthy partnerships for sustainable development in the European Union's free trade agreements

Mind the compliance gap: managing trustworthy partnerships for sustainable development in the European Union's free trade agreements

Mind the compliance gap: managing trustworthy partnerships for sustainable development in the European Union's free trade agreements

Recent years have seen intensified interest in the labour and environment provisions in the EU's FTAs. The question has arisen whether the incorporation of 'trade and sustainable development' (TSD) chapters in the EU's FTAs deliver on their promise of using the EU's trade power to effectively promote the protection of the environment and improved working conditions in third countries. In particular, the compliance gap between the TSD provisions and their implementation has come to the forefront of the debate. Concerns have been raised that the EU's'promotional approach' based on dialogue and cooperation is less effective that the 'sanctions-based' approach followed by the US and Canada. This article examines the mechanisms for compliance in the TSD chapters in recent EU FTAs and argues that they hold greater promise for real improvements in labour and environmental standards than a sanctions-based enforcement system. However, it posits that, to be effective, and thereby gain the trust of civil society, the EU's 'promotional' approach must be supported by effective mechanisms for transparency, institutionalised dialogue and accountability.

The Trade-Labour Nexus: Global Value Chains and Labour Provisions in European Union Free Trade Agreements

Labour standards provisions contained within the European Union’s (EU) free trade agreements (FTAs) are a major iteration of attempts to regulate working conditions in the global economy. This article develops an analysis of how the legal and institutional mechanisms established by these FTAs intersect with global value chain governance dynamics in counoutries with contrasting political economies. The article formulates an original analytical framework to explore how governance arrangements and power relations between lead firms in core markets and suppliers in FTA signatory countries shape and constrain the effectiveness of labour provisions in FTAs. This analysis demonstrates how the common framework of labour provisions in EU trade agreements, when applied in a uniform manner across differentiated political-economic contexts, face serious difficulties in creating meaningful change for workers in global value chains.

Is the WTO Dispute Settlement System a Model for EU FTA Investor-State Disputes?

Is the WTO dispute settlement system (DSS) is a suitable model for investor-state disputes arising under European Union Free Trade Agreements (EU FTAs)? Although previous attempts to replicate the system have failed at the multilateral level, the DSS is highly suitable to the specific nature of the EU. First, the WTO has helped create an integrative system, involving all stakeholders, i.e. disputants, States, and the organization itself. Second, a close analysis of the DSS shows that it is strongly focused on economic cooperation and not merely on litigation. Finally, unlike investment arbitration, the DSS has seemingly preserved the rule of law by allowing appeals. In this respect, the Appellate Body has gradually developed into a ‘rebellious’ judiciary, immune from political considerations. Transferring these key institutional features to the investment sphere would not only constitute structural improvements to the current system but also provide the EU with an instrument of global governance.

A Supply Chain Approach to Trade and Labor Provisions

As labor provisions in trade agreements have become increasingly ubiquitous, there remain questions about whether or not these provisions have been effective in improving working conditions in trading partner countries. Through an analysis of sample labor provisions in United States and European Union free trade agreements, this paper shows that both approaches, albeit using different methods, aim primarily to improve <em>de jure</em> labor law and <em>de facto</em> enforcement of that law by government regulatory institutions. This paper argues that instead, labor provisions ought to be grounded in a supply chain approach. A supply chain approach shifts the focus from impacting <em>de jure</em> and <em>de facto</em> labor law as administered by the state though sanctions or dialogue, and towards context specific, experimental, and coordinated private and public regulatory interventions that operate in key export industries that are implicated in trading partners’ supply chains. It does so in part by recognizing the potential regulatory power of consumer citizenship.

Revenue, welfare and trade effects of European Union Free Trade Agreement on South Africa

Background: Using the partial equilibrium WITS-SMART Simulation model to assess the impact of liberalisation under the Trade Development and Cooperation Agreement (TDCA) of a free trade area between the European Union and South Africa. The identification of the impact of such agreement allows for trade policy negotiation adjustment that can be beneficial for South Africa.Aim: The aim of the study is to estimate and discuss the impact of a Free Trade Agreement (FTA) with the European Union and South Africa. More specifically, the study intends to estimate the impact of revenue, welfare, imports, exports, trade creation and to come up with policies options for South Africa that can be used in negotiations and policy formulations.Setting: The study used international trade data (2012) available in the WITS-SMART model to assess bilateral trade agreement between the European Union and South Africa.Methods: To identify the impact on revenue, welfare, imports, exports and trade creation, the study simulated an FTA (0% tariff rate) for all goods exchanged between the European Union and South Africa. Also, the elasticity of substitution used for the simulation model was 99%.Results: The findings of the study reveal that total trade effects in South Africa are likely to surge by US$ 1.036 billion with a total welfare valued at US$ 134 million. Dismantling tariffs on all European Union (EU) goods would be beneficial to consumers through net trade creation. Total trade creation would be US$ 782 million. However, South African producers are likely to contribute a trade diversion of US$ 254 million which has a negative impact on consumer welfare. The country might also experience a revenue loss amounting to US$ 562 million because of the removal of tariffs. In trade, the country’s exports and imports to the EU are expected to increase by US$ 12.419 million and US$ 1.266 million, respectively.Conclusion: The European Union–South Africa FTA would result in both trade creation and trade expansion effects. However, trade creation and revenue loss are potential threats. In order to mitigate revenue loss, government needs to consider alternative tax such as consumption tax on certain goods and value-added tax.

Assessing the Impact of the Thailand-European Union Free Trade Agreement on Trade and Investment in Thailand

This study investigated the role of the Generalized System of Preference (GSP) from the EU on Thai exports and the implications of an EU FTA on trade and investment in Thailand. The findings indicated that Thai exporters did not maximize the use of the GSP as their exports under the system amounted to 63% of GSP eligible goods. The OLS regressions failed to observe any significant role the GSP had on Thai exports. From international experience, fixed and random effects models suggested that signing an FTA was not a significant determinant of exports to the EU and obtaining investments from the EU.

Deeper Integration or Wider Integration? : the case of Gulf Cooperation Council

We empirically evaluate whether fostering trade partnership within the region is a better economic course of action for the Gulf Cooperation Council than engaging into preferential trade arrangements with well-established trade blocs outside the region. We use the 8.1 version of Global Trade Analysis Project to analyze four scenarios representing various Gulf Cooperation Council trade integration paths, taking into consideration the issue of non-Tariff Barriers and trade facilitation measures. Results indicate that the Gulf Cooperation Council gain from lifting tariffs and non-tariff barriers on trade with the Greater Arab Free Trade Area subgroups and with the European Union is limited unless such barrier lifting is complemented with trade facilitation measures. With trade facilitation, the full completion of Greater Arab Free Trade Area scenario yields the highest welfare gain for the Gulf Cooperation Council, while the Gulf Cooperation Council-European Union Free Trade Agreement scenario yields positive but smaller gain. The small gain with Gulf Cooperation Council-European Union scenario is explained by the negative terms of trade effects following trade liberalization. These results underscore the importance of deepening Greater Arab Free Trade Area’s scope through introduction of trade facilitation measures as well as measures beyond merchandize trade liberalization.

Foreign Direct Investment, Restrictions and Privatization: the Mexican Regulatory Experience

This article studies Mexico’s evolution from a protected economy in the 1970s to the free market economy of today. It also presents the different political and economic stages of this process, as well as the important changes made to laws on foreign investment in preparing for the North American Free Trade Agreement (NAFTA), the Mexico-European Union free trade agreement and other bilateral agreements on investment promotion and protection. This has also led Mexico to privatize its economy, its banks and telecommunications in particular. This article also explains the legal framework for this privatization and presents an outline on the possible opening of the electricity sector.

Cotas tarifárias e o impacto sobre as exportações agrícolas brasileiras na União Européia

Este trabalho tem como objetivo avaliar os efeitos de cotas tarifárias adicionais para as exportações brasileiras de produtos agrícolas, com base na proposta européia de maio de 2004 no âmbito das negociações para um acordo de livre-comércio Mercosul- União Européia. A análise teórica do funcionamento dos três instrumentos da cota tarifária (seu volume e as tarifas intra e extracota) revela que, dependendo da demanda, apenas um deles efetivamente restringe as importações. Assim, a oferta de cotas adicionais não implica necessariamente um aumento equivalente na quantidade exportada. Na estimativa de ganho de receita deve ser considerada também a variação na renda da cota. Além disso, a administração da cota terá um papel crucial na alocação dessa renda. Caso seja o Mercosul a fazê-la, as estimativas indicam um aumento de US$ 728 milhões na receita de divisas, bastante próximo do valor da cota total oferecida a preços correntes, sendo US$ 252 milhões resultantes da apropriação das rendas das cotas e US$ 476 milhões do incremento nas exportações. Se o controle das cotas for realizado pela União Européia, o ganho do Brasil decorrerá exclusivamente do aumento das exportações, atingindo apenas 63,7% do valor da cota citada.

Political & Quasi-Adjudicative Dispute Settlement Models in European Union Free Trade Agreements - Is the Quasi-Adjudicative Model a Trend or is it Just Another Model?

In this paper, interpretation and application dispute settlement provisions of European Union (EU) Free Trade Agreements (FTAs) signed between 1963 and 2006 are analysed. This will be through the two models of Dispute Settlement in International Law: the political and adjudicative. Political elements of dispute settlement mechanisms in Public International Law and General Agreement of Tariffs and Trade (GATT) served to establish those of the EU FTAs. Adjudicative and quasi-adjudicative elements of dispute settlement mechanisms of Public International Law and World Trade Organization (WTO) Law were used as parameters to set up those of the EU FTAs. These parameters also helped to define a new and unique hybrid model. The features of this model were found in Agreements with trade issues other than FTAs. It is possible, however, for future FTAs to incorporate them. The hybrid model is based on an adjudicative framework and includes both political and adjudicative elements. In conclusion, it was found that even though WTO Members incorporated adjudicative elements in the Dispute Settlement Understanding (DSU), the EU did not incorporate them bilaterally for a further five years. Furthermore, since the creation of the DSU in 1995, the EU has established more FTAs based on a political model than on a quasi-adjudicative. Consequently, the quasi-adjudicative dispute settlement model has not represented a clear trend in EU FTAs.

Geographical indications and the South Africa–European Union free trade agreement

Geographical indications, as a form of intellectual property, are becoming increasingly important in global trade. In South Africa’s trade and cooperation agreement with the European Union, problems over the use of names such as ‘port’ and ‘sherry’ provided an important obstacle to the conclusion of the trade deal. This paper argues that the conflict over geographical indications in this trade agreement must be seen in the context of broader initiatives to establish a system of protecting this form of intellectual property through the World Trade Organisation.