According to the World Trade Organization, the UAE has an open trade policy with minimal tariffs and few non-tariff obstacles. Tariffs (see the separate section on import tariffs) and non-tariff barriers are examples of trade barriers.
International trade law consists of the regulations and practices that control trade between two or more nations. This industry’s major goal is to help domestic companies expand abroad without facing prejudice because of their foreign-country background. It encourages maintaining a balance between foreign policy and national security. It is significant for law students to understand how the World Trade Organization (WTO) evolved from the General Agreement on Tariffs and Trade (GATT) as a treaty into a permanent organization. The foundations of global trade law are laid there. The ease of doing business across borders is determined by the approval or rejection of treaties by countries at the international level. A nation must put into effect domestically what it promises to do internationally when it signs a treaty requiring compliance with international trade law.
In contrast to international trade law, international business law is not restricted to the buying and selling of goods and services. International business law regulates a variety of other things that influence a firm, including money, trademarks, economic issues, etc. International organizations in charge of developing international business law include:
- The World Trade Organization (WTO)
- The OEC&D (OECD)
- The International Monetary Fund
- The World Intellectual Property Organization (IMF)
- IBRD or International Bank for Reconstruction and Development, a subsidiary of the World Bank
The success of a nation’s economy in fostering trade with other nations largely rests on how well international business law is applied. A nation’s economy grows more robustly the more the rest of the world depends on its own industries. Because of this, a country’s political leaders have a significant influence on its economic and global standing.
The ultimate goal of international trade and business law is to facilitate trade that fosters freedom, fair competition, predictability, transparency, lacks discrimination, promotes development, and supports economic reform. The following steps help to attain all of these goals and objectives at the global level:
Most Favored Nation Status: A country that has MFN status advocates fair treatment for all of its trading partners.
Tariffs: Controlled taxes that one nation imposes on products or services imported from another nation.
Laws that encourage treating imported goods equally with indigenous goods are known as “national treatment.” It promotes the fair treatment of imported goods and services and forbids discrimination.
Anti-dumping laws forbid businesses from dumping (selling goods for a significantly lower price than they are worth) in order to protect domestic interests.
Subsidies and Countervailing Measures: Government subsidies are subject to regulations designed to reduce their negative impacts on global trade and business.