Group 2 IBT Report PDF

MALIGAYANG ARAW PO! INTERNATIONAL BUSINESS & TRADE G SADSAD, Jeanly C. R HIDALGO, Rhenz O Maianne I. U DE CASTRO, Karen P CORTEZ, Ingrid HERNANDEZ, Jessa 2 CORTEZ, Bejay  A. WTO RULES ON THE REGIONAL ECONOMIC INTEGRATION The World Trade Organization...

MALIGAYANG ARAW PO! INTERNATIONAL BUSINESS & TRADE G SADSAD, Jeanly C. R HIDALGO, Rhenz O Maianne I. U DE CASTRO, Karen P CORTEZ, Ingrid HERNANDEZ, Jessa 2 CORTEZ, Bejay  A. WTO RULES ON THE REGIONAL ECONOMIC INTEGRATION The World Trade Organization (WTO) has rules regarding regional economic integration, which is when countries in a certain area work together to boost trade and economic ties. Regional economic integration Means countries form agreements to trade more easily with each other. This can include free trade areas, customs unions, and common markets WTO Rules The WTO allows countries to create these agreements, but they must follow certain rules. These rules ensure that agreements do not hurt trade with other countries outside the region. Most-Favored-Nation (MFN) Principle This rule means that if one country gives a special trade advantage to another country, it must give the same advantage to all WTO members. Regional agreements should not create unfair advantages for member countries over non-members.  Transparency Countries must inform the WTO about any new trade agreements. This ensures that all members are aware of changes and can adapt accordingly.  Development and Trade The WTO supports regional agreements that help developing countries. These agreements can help improve Example of Regional Economic Integration European Union (EU). Free Trade Customs Union Common Market WTO Compliance  North American Free Trade Agreemen (NAFTA) Free Trade Investment Labor and Environmental Standards  B. EVOLUTION OF REGIONAL ECONOMIC INTEGRATION MODELS Free trade area. This is the most basic form of economic cooperation. Member countries remove all barriers to trade between themselves but are free to independently determine trade policies with nonmember nations. An example is the North American Free Trade Agreement (NAFTA).  1. DIVERSIFIED FREE TADE AGREEMENT Diversified free trade agreements are about expanding the range of goods and services that countries trade with each other. They open up their trade to new things and explore different possibilities.  2. TRANS-PACIFIC ECONOMIC STRATEGIC PARTNERSHIP AGREEMENT The Trans-Pacific Partnership (TPP) is by far the most comprehensive trade and investment pact since the creation of the World Trade Organization (WTO) more than 20 years ago. It eliminates a broad array of barriers to trade and investment, some of which have been untouchable in previous trade pacts, and establishes state-of-the-art rules on domestic policies that can distort trade and investment flows. The goal OF TPP is to become a comprehensive trade framework of high quality and becomes a model of twenty-first century trade agreement, covering all the Asia- pacific region.  INTELLECTUAL PROPERTY The TPP establishes new rules governing patents for pharmaceuticals, for example, patent linkages and patent term extension, and copyright protections, which narrow the gap with US practice. The TPP sets criteria for data protection for patented drugs, including biologics, reaching a compromise between divergent rules across the Asia-Pacific that will both spur innovation and broaden access to new medicines 9/10/2020 11  SERVICES AND INVESTMENT The TPP opens up avenues for greater services trade, where nontariff barriers remain quite high across countries. TPP financial services commitments ensure greater access for portfolio management and payment/ clearing services and place some constraints on state-run postal insurance. But data localization requirements are still permitted in this area, which has elicited legitimate criticism. 9/10/2020 12  DIGITAL TRADE/E- COMMERCE TPP provisions promote a free and open market for trade in digital goods and online services. The TPP limits restrictions on data flows and explicitly prohibits the practice of "data localization" as a precondition for doing business. The TPP also covers a wide set of cross-cutting issues for e-commerce, protection of proprietary technologies related to software, copyright 9/10/2020 13  TPP EXPANSION The TPP is a living agreement and a number of countries already are actively examining its requirements to determine whether to ask to join once the agreement enters into force. Contrary to initial expectations that the pact would be open only to APEC members, TPP final provisions allow any country to join that is willing and able to implement and enforce its extensive obligations and that is approved by all current TPP members. 9/10/2020 14  C. EU LAW AND EXTERNAL TRADE The EU wasRELATIONS created after the end of the World War II. The first steps were to foster economic cooperation with the philosophy according to which countries that trade with one another are economically interdependent and will thus avoid conflict. The founding fathers of this idea were Winston Churchill, Konrad Adenauer, Alcide De  1. EU INSTITUTIONS a. The European Council- It is the Summit of the heads of state and government of all EU countries. It is the major body of the EU, including the governments of 27 EU countries, yet is not an EU institution. The European Council is held at least four times a year. It sets the overall guidelines for the EU policies, and dealing with complex or sensitive issues that cannot be resolved at a lower level of the intergovernmental cooperation. b. The European Parliament-The European Parliament is directly elected by and is the voice of the EU people for a term of office of five years. The European Parliament is one of the EU's main law-making institutions, and decides EU laws and budget together with the Council of Ministers, and supervises all of the EU's work. 9/10/2020 16  1. EU INSTITUTIONS c.The Council of Ministers - The voice of the member states. It is the supreme decision-making body of the EU. Member states are usually represented by foreign affairs ministers or ministers responsible for the subject under discussion. d. The European Commission - Promoting the common interest The European Commission comprises 27 independent members who have commissioners, one from each EU country. The European Commission is the EUs executive body and has competence to propose new 9/10/2020 17  1. EU INSTITUTIONS e. Court of Justice of the European Union The 'Court of Justice of the EU' is the common judicial institution of the EU and of the European Atomic Energy Community (EURATOM), including three courts, namely: i. The 'Court of Justice’ ii. The 'General Court' (created in 1988) iii. The Civil Service Tricreal (created in 2004). Their primary task is to examine the legality of the EU measures and ensure the uniform interpretation and application of the EU law. 9/10/2020 18  STRUCTURE:THE THREE PILLARS 1. The first pillar is the law concerning economic and social rights. This is found in the Treaty of the European Communities, signed at Rome in 1957 (hereinafter the 'TEC') and subsequently amended by other Treaties concluded between the member states. 9/10/2020 19  STRUCTURE:THE THREE PILLARS 2. The second pillar concerning the EU Common Foreign and Security Policy ('CFSP') was established under the Treaty of the European Union, signed at Maastricht in 1992 (hereinafter the 'TEU'). 9/10/2020 20  STRUCTURE:THE THREE PILLARS 3.The third pillar concerning Police and Judicial Cooperation in Criminal Matters (formerly 'Justice and Home Affairs'), was established under the 'TEU'. 9/10/2020 21  3. SOURCES OF EU LAW a.Legislation The EU legislation is divided into 'primary' and secondary' legislation. The treaties (primary legislation) are the basis or ground rules for all EU action. Secondary legislation, which includes regulations, directives, decisions, and others, are derived from the principles and objectives set out in the treaties. Primary legislation (Treaties)  The primary legislation, or treaties, are effectively the 'constitutional lau of the EU. They are created by governments from all EU member states acting in consensus. They lay down objectives, rules for BU institutions, how decisions are made, the relationship between the EU and its member countries, the basic policies of the EU, legislative procedures, and the powers of the BU. A treaty is a binding agreement between EU member countries. Under the treaties, EU institutions may adopt legislation that the member countries then implement. Secondary Legislation  The secondary legislation of the EU sets out how the objectives expressed in the treaties (primary legislation) are to be accomplished. The European Parliament, the European Commission and the Council of Ministers are empowered by the Treaties to legislate on all matters within the EU's competence. These bodies issue secondary legislation, including:   A 'Regulation' issued by the European Commission with the Council's approval is a binding legislative act. It must be applied in its entirety across the EU. 'Regulation' is directly applicable to member states, no needs for national legislation. A 'Directive' issued by the European Commission with the Council's approval is a legislative act that sets out a goal that all EU member states must achieve, while allowing member states to decide how to achieve the goal.  A 'Decision' issued by the Court of Justice or European Commission, is binding upon those to whom it is addressed, for example, an EU member state or an individual company, and is directly applicable. A 'Recommendation' is not binding. A recommendation allows EU institutions to make their views and to suggest a line of action An Opinion is not binding. It may be issued by the main EL institutions (such as the European Commission, the European Council, or the European Parliament), the Committee of the Regions, and the European Economic and Social Committee. Supremacy of the EU law In the event of a divergence between the EU law and the national law of a member state, it is the EU law that prevails. The EU law is superior to national laws in many areas, especially in terms of economic and social policy, and even to member states constitutions. 4. Direct Effect of EU Law 1. The Horizontal' direct effect: Some BU acts, such as treaties and regulations, have 'horizontal' direct effect, i.e, member states do not have to 'transpose' (or 'integrate') a treaty or a regulation into national law, and citizens may sue one another on the basis of this act. 2. The Vertical direct effect: Different from treaties or regulations, directives have 'vertical' direct effect. Directives allow member states to make some choice of how they 'transpose a directive into national law. In order to achieve a successful EU, member states must voluntarily 'transfer' a part of their state power to EU institutions, as well as accept the supremacy of the EU law to national laws and the direct effect of the EU law in the legal order of member states. Being one of the leading trade regions, the EU has a strong interest in open markets and clear regulatory frameworks; therefore, it needs to reinforce the EU competitiveness in world markets. Besides, the EU has responsibility towards EU citizens as well as towards the rest of the world. THANK YOU!