Today international trade is still a both difficult and complex matter. One does not even have to be a businessperson anymore to realize that. In this age everyone can browse the internet and with just a few clicks have almost everything delivered right to one?s doorstep from all around the world. Due to this simplicity it is often overlooked that ordering goods from the other side of the globe or even just a few steps beyond the closest border involves many differences and problems that need to be taken care of. But while a small order from a private person causes enough trouble, still far more legal issues arise from trade from businesses to business (B2B) contracts over borders. The reason for this is that every state has its own laws, rules and customs and it needs to be clarified which is to be prioritized and obeyed. As the cross-border trade has grown dramatically during the last decades, it therefore has become essential that organizations fight for unifying the laws and regulations for international trade against. One of the most famous and most important institutions is the International Institute for the Unification of Private Law or UNIDROIT. Its main tasks consist of harmonizing and coordinating international private law. Currently (July 8, 2007) the organization has 61 members, including the majority of the leading industrial nations like the United States, Germany, India and China.
In the following paper I am going to analyze and explain the UNIDROIT and its achievements in detail. Therefore I am going to start with a brief summary of its history and evolvement since its foundation. After this I will concentrate on the goals and objectives the organization has been founded upon. Then I will concentrate on the structure and working principles of it, followed by UNIDROITS certainly most important achievements concerning what they say and what importance they have. Before ending with a brief conclusion of what has been discussed, I will also come to setbacks in the organizations history and structure.
Table of Contents
1. Introduction
2. History
3. Objectives
4. Organization
5. Important Achievements
a. UNIDROIT Principles of International Commercial Contracts
b. Convention on International Interests in Mobile Equipment
6. Criticism and Setbacks
7. Conclusion
Research Objectives and Themes
This paper aims to analyze the role of the International Institute for the Unification of Private Law (UNIDROIT) in harmonizing global trade regulations, investigating its structural evolution, key achievements, and the challenges it faces in promoting international legal uniformity.
- Historical development and foundation of UNIDROIT.
- Core objectives and institutional structure.
- Detailed analysis of the UNIDROIT Principles of International Commercial Contracts.
- Examination of the Cape Town Treaty on International Interests in Mobile Equipment.
- Evaluation of organizational setbacks and future outlook.
Excerpt from the Book
b. Convention on International Interests in Mobile Equipment
The leasing and financing of aircrafts, helicopters and also aircraft engines has always been not only difficult, but also extremely risky as soon as it involved crossing a border. There have been many complaints and initiatives, but they all got stuck at some point. Therefore borrowers had to bear high risks and lessees had to pay high interest rates. But since the Convention on International Interests in Mobile Equipment or Cape Town Treaty as it is commonly called, it is all supposed to change. It all started in 1988 in Canada, when a convention was drafted up concerning all “movable assets” of high value. They did not just concentrate on the equipment the Cape Town Treaty now did, but also referred to ships, satellites and railways. Maybe because of the enormous rage they did not succeed completely, but the initiative was strong enough to get the UNIDROIT involved. Still they failed in the beginning, as not all demands of everyone participating could be satisfied. (Sutton, 2001) (Cape Town Treaty, 2007)
But it all changed in 1996. Both the American Boeing Commercial Airplanes, part of The Boeing Company, and the European Airbus S.A.S, which is a subsidy of the European Aeronautic Defense and Space Company in charge of civilian aircraft manufacturing, got involved. They contacted the International Air Transport Association (IATA), to end this blockade. Surprisingly, the IATA really managed to speed the initiative up again by suggesting using several conventions tailored for the needs of the specific industries. Although the International Civil Aviation Organization, which belongs to the United Nations, tried to hinder this suggestion initially, before trying to make it its own, the movement could not be stopped anymore, as UNIDROIT had the sure and complete support from the two major aircraft manufacturers. (Sutton, 2001)
Summary of Chapters
1. Introduction: Discusses the complexity of international trade and the growing need for the unification of private law to address legal issues in cross-border business.
2. History: Outlines the origins of UNIDROIT, established in 1926 under the League of Nations, and its transition into an independent international organization.
3. Objectives: Explains the institute's goals, ranging from abolishing differences in private law to distributing works for the benefit of global legal systems.
4. Organization: Details the three primary organs—the Secretariat, the Governing Council, and the General Assembly—and their respective administrative and decision-making functions.
5. Important Achievements: Focuses on the success of the UNIDROIT Principles of International Commercial Contracts and the development of the Cape Town Treaty.
6. Criticism and Setbacks: Analyzes the limitations of the organization, specifically its lack of executive power and the low number of state ratifications for its conventions.
7. Conclusion: Summarizes the organization's significant contribution to trade harmonization while acknowledging the long road ahead for global legal unity.
Keywords
UNIDROIT, Private Law, International Trade, Legal Harmonization, Cape Town Treaty, Commercial Contracts, Globalization, Arbitration, International Conventions, Mobile Equipment, Lex Fori, Lex Causae, Legal Standardization, Cross-border Trade, Dispute Resolution.
Frequently Asked Questions
What is the fundamental purpose of this paper?
This paper examines the role and impact of UNIDROIT in harmonizing international private law, detailing how the organization addresses the complexities of global business through standardized rules.
What are the primary thematic areas covered in the document?
The work covers the history, institutional structure, main legal principles, the Cape Town Treaty, and the challenges regarding the enforcement and adoption of international law.
What is the main objective of UNIDROIT?
The primary goal is to study and analyze methods for harmonizing and coordinating private law between different nations to eventually create a unified international legal system.
Which scientific methodology is applied?
The author employs a descriptive and analytical approach, reviewing legal statutes, historical developments, and secondary academic sources to explain the organization's work.
What topics are discussed in the main body?
The main body treats the organizational structure, the application of UNIDROIT Principles in commercial arbitration, the development of the Cape Town Treaty, and criticisms concerning the institute's reach.
Which keywords define this work?
The core keywords include UNIDROIT, Private Law, International Trade, Legal Harmonization, and International Conventions.
How do the UNIDROIT Principles assist in international arbitration?
They provide a comprehensive, voluntary set of rules that help resolve issues related to characterization and preliminary questions in legal disputes where national laws may be unclear or contradictory.
What are the significant setbacks mentioned in the study?
The study highlights the lack of executive power to enforce rules and the relatively low number of member state ratifications for significant agreements like the Cape Town Treaty.
What role did Boeing and Airbus play in the Cape Town Treaty?
They acted as a driving force in 1996, collaborating with the IATA to overcome institutional blockades and ensure the successful drafting of the convention for mobile equipment financing.
- Quote paper
- Andreas Giese (Author), 2007, UNIDROIT - How it contributed to international trade harmonization, Munich, GRIN Verlag, https://www.grin.com/document/186409
