Kansainväliset sopimukset Kalvot 1b Kansainvälisten markkinoiden juridiset rakenteet Matti Rudanko

1. INTERNATIONAL TRADE POLICY Starting point: closed (national) markets int’l market National market (State A) B D C Markkinoiden juridinen toimintaympäristö Kalvot 1

The Goal: Global Free Trade Integrated national and international market B A C D Markkinoiden juridinen toimintaympäristö Kalvot 1

Free trade: advantages/drawbacks economic growth (efficiency; the Coasian model) global welfare and the interests of developing countries ? political/cultural influence and added economic resources help to strengthen democracy and improve social structures ”race to the bottom” in social protection free trade tends to bring welfare especially to those who are already well off multinationals industrialized countries (non-democratic) governments of developing countries cf. the Rawlsian concept of justice Markkinoiden juridinen toimintaympäristö Kalvot 1

Importance to companies level playing field global markets reduced risks related to foreign markets market strategies, e.g. pricing policies marketing establishing abroad Markkinoiden juridinen toimintaympäristö Kalvot 1

Commercial policy instruments I Reaction by: government (the state) WTO : harmonization of national (and EU) measures EU: replaces national norms allowed grounds: market disruptions: GATT art. XI, XIX COUNCIL REGULATION (EC) No 260/2009 on the common rules for imports barriers to trade dumping Markkinoiden juridinen toimintaympäristö Kalvot 1

Commercial policy instruments II Purposes aimed at: equilibrium of the balance of payments ensuring foreign trade other national economic goals: economic growth, production, employment Measures: trade monitoring; licenses, import permits price undertakings / anti-dumping duties Markkinoiden juridinen toimintaympäristö Kalvot 1

Rules for Imports Markkinoiden juridinen toimintaympäristö Kalvot 1 GATT art. XI, XIX, COUNCIL REGULATION (EC) No 260/2009 on the common rules for imports reactions: surveillance, safeguard measures (including import quotas under auspices of WTO) allowed grounds: domestic agricultural overproduction balance of payment problems foreign trade of developing countries Markkinoiden juridinen toimintaympäristö Kalvot 1

Rules for Imports, cont. Examination of the trend in imports and of serious injury or threat of serious injury to Community producers resulting from such imports shall cover in particular: (a) the volume of imports, (b) the price of imports, (c) the consequent impact on Community producers as indicated by trends in certain economic factors such as: production, capacity utilisation or stocks, sales or market share, prices, profits or cash flow, employment Markkinoiden juridinen toimintaympäristö Kalvot 1

Control of Barriers to Trade target: public commercial policy measures conflicting with international law and rules of international trade such as: duties and other payments quantitative restrictions (EU Regulation 260/2009, GATT XIX) technical barriers (safety and other regulations) state subsidies diskrimination in public procurement divergent IPR protection reaction: counter-measures (e.g. EU Reg. 260/2009) Markkinoiden juridinen toimintaympäristö Kalvot 1

Dumping Control Imposing anti-dumping duties normal value = selling Requirements for imposing anti-dumping duties (EU regulation): a realized / imminent substantial damage to corresponding EU production causal relationship to the export interest of the Community normal value = selling price on the home market of the export country or the export price to another country anti-dumping duty export price Markkinoiden juridinen toimintaympäristö Kalvot 1

Allowed protection/protectionism National Supporting and Protective Measures Markkinoiden juridinen toimintaympäristö Kalvot 1

Pricing on International Markets Markkinoiden juridinen toimintaympäristö Kalvot 1

Impact of Competition Law Both public and private interests sound and efficient competition the interests of customers and consumers (sometimes those of a competitor) initiative to reactions comes from private actors / supervision authorities the sanctions are effected by authorities prohibitions, economic sanctions damages liability, nullity of illegal transactions of cartels and monopolies (decided in national general courts) Markkinoiden juridinen toimintaympäristö Kalvot 1

Impact of Marketing Law Private interests legal protection of consumers / competitors Consumer Protection Act / Act on Improper Business Practices the reaction follows on the initiative of a private actor or an authority the reaction is effected by the authority a ban on the marketing practice Markkinoiden juridinen toimintaympäristö Kalvot 1

Common Policies of the EU Trade Policy harmonized with WTO Rules Development cooperation policy Treaty on the functioning of the European Union TFEU 2008 replacing the Treaty Establishing the EEC 4(4), 208, 214, Treaty on the European Union TEU or Maastricht Treaty 3(5), 21 sustainable development interests of developing countries eradication of poverty Markkinoiden juridinen toimintaympäristö Kalvot 1

Actors and Structures of World Trade Citizens’ organizations Multinationals Industrialized countries Smaller companies World Trade WTO OECD Etc. Developing countries UNCTAD Trade unions “Nations” Governments Markkinoiden juridinen toimintaympäristö Kalvot 1

WTO and OECD Outside countries WTO (159 members) USA OECD (34 members) The pivotal groupings of world trade Outside countries WTO (159 members) USA OECD (34 members) JAPAN EU Markkinoiden juridinen toimintaympäristö Kalvot 1