Global Trade and Multicultural Trade Agreements

The United States is actively negotiating two separate multilateral free trade deals. TPP (Trans-Pacific Partnership) and TTIP (Trans-Atlantic Trade and Investment Partnership) are two examples of trade deals targeted at different parts of Southeast Asia and the European Union, in that order. Historically, bilateral trade deals were thought to have conceptual and legal implications for international trade as conducted by various nations. Without a doubt, such trade deals would have a significant impact on how corporate practices are carried out internationally, as a result of restructuring numerous global law constraints. Whereas such transformations might seem to promote complications on a by-now multifaceted global legal structure, the influence on trade agreements shall be helpful. Besides, these agreements shall, in fact, enhance various associations between states alongside helping in perfecting the mushrooming system of global commerce.
Above all, amongst the two abovementioned agreements on trade, the TPP provides remarkable development in support of every party that is concerned. TPP certainly is a free-trade agreement that is being agreed amongst twelve Pacific Rim states. The trade associates incorporate Brunei Darussalam, Australia, Japan, Canada, Chile, Malaysia, Vietnam, New Zealand, Singapore, the United States, Peru, and Mexico (Noe, Hollenbeck, Gerhart & Wright, 2006). Besides, TPP is described as an attempt towards developing a comprehensive agreement, which shall trim down tariffs together with other obstacles on the various open markets, whereas setting up standards towards a variety of issues that are affecting global competition as well as trade (Rauch & Trindade, 2002). More absolutely, intellectual property rights, government procurements on commodities together with the situation of most of the private enterprises are amongst some of the major points, which the negotiators are supposed to deal with within this multilateral affiliation.
On account of this trade agreement, every twelve member state is anticipated to benefit economically. The U.S., which is the largest pact associate, looks forward to the TPP to enhance U.S. employments, augment investments through lowering tariff rates alongside generating approximately $125 annual exports reaching the year 2025 (Noe, Hollenbeck, Gerhart & Wright, 2006). Besides, for economic impacts, TPP similarly has a prospective of bolstering foreign policies in American. The administration of President Obama had placed a new commitment level concerning “Asia-Pacific Pivot”. The commitment was not merely an attempt towards deepening economic U.S. associations with the partners of TPP but to as well interfere with its China relationship economically. The significant presence of Americans together with its effect within Asia shall restore confidence on U.S. partners concerning its resolute support in the period whenever China is augmenting its political and military existence within most of the South East Asia regions. As expected, tensions have been heightening within the area of Asia-Pacific for the past years due to various agreements being made concerning the area. In the years 2012, September, Japan publicly owned her major three out of five islets which are composing up the islands of Senkaku/Diaoyu (Rauch & Trindade, 2002). The islands that have been for a longer period been uninhabited have been within the jurisdiction of Japan for several decades. The will provide how legal impact multinational trade agreements have on global trade. It will similarly look into the legal impacts on foreign market, domestic trade as well as various legal case in an attempt of developing the analysis.
Introduction
In the year 1971, China brought about the island disputes to the U.S.A. The heated discussion was meant to make U.S to “hand over” the land to China's government (Noe, Hollenbeck, Gerhart & Wright, 2006). This came as result of the several claims that are being made by most of the scholars to insinuate that islands are within the territory of China The region under consideration is in the neighborhood of shipping lanes, grounds for fishing. For that matter, several speculators are claiming there might be some oil reserves nearby. The move by Japan was certainly a momentum is support of the military from China to have control of the area. However, these to be carried out as per the outlined agreements which both states are having. There should not be the war, but the solution should be attained amicably following the outlined guidelines that are stipulated within the documented agreements.
When President Obama visited Japan in the year 2014, April, he concisely articulated the commitment of the U.S.A to Japan together with its Asia partners. President Obama made a declaration the Islands of Senkaku/Diaoyu are enshrined within Article 5 of the security treaty with Japan and US Article 5 of this treaty outlines that the two states shall be acting towards meeting a common threat concerning an assault against ‘areas that are under the Japan administration’(Rauch & Trindade, 2002). Confidently, this statements strengthened Japan together its counterparts in Asia. Hardly ever does government of U.S.A take e within territorial disputes; therefore the declaration was the U.S.A- Japan testimony concerning camaraderie with the relations concerning security issues (Rauch & Trindade, 2002).
In general, a TPP agreement shall be standing for 37.5 percent of the global GDP together with the 25.6 percent of the every global trade (Rauch & Trindade, 2002). When everything is in order, the region of Pacific Asia is predicted to be the subsequent worldwide area where there would be essential economic development globally. By the year 2030, the population of Pacific Asia is predicted to augment up to 175 million people. To all intents and purposes, East Asian states are anticipated to exceed NAFTA (North Atlantic Free Trade Agreement) together with the Euro Zones towards turning out to be international leading trading block.
Provided these points, certainly, it is perceptible that Asia shall be benefiting significantly from an agreement of the TPP. The benefits economically are apparent even though the finely tuned U.S. existence, as well as an influence on the area, provides the needed security towards stabilizing the region. Presently, there exist approximately 320,000 U.S.A troops within the areas. Besides, it approximated 62 percent of the entire U.S. naval capacity shall be inhabiting an area reaching the year 2020 (Noe, Hollenbeck, Gerhart & Wright, 2006). An increased presence of U.S. troops certainly is meant to curb the attempt China to the area. For either case, Asia-Pacific is on the brink of success. Besides, the future consensus of the region is undoubtedly positive. An agreement on the TPP shall be the primary foundation for economic growth as well as enhanced associations with the U.S.A
Evidently, the agreement is offering various advantages for the U.S. firms too. For example, Malaysia and U.S.A partnership will be strengthened owing to past and anticipated economic growth within the country. U.S.A is deemed to be the biggest importers in Malaysia with exports from America to Malaysia attaining a higher record of approximately $18 Billion during the year 2010. In the year 2012, U.S.A largest exports majorly composed of machinery ($7.2 billion), iron and steel ($364 million) together with the aircraft ($1.2 billion) as well as some exports from agricultural produce (Noe, Hollenbeck, Gerhart & Wright, 2006). The U.S.A Company having its huge presence within Asia region that is Caterpillar is tasked with the responsibility of doing major exports of machinery. As well, the manufacturers of the motor vehicle are anticipated to similarly make out augmented sales that are coming as result of TPP agreement. Ford and General Motors merely was responsible for the one percent of total fresh cars for the passenger that were registered in Japan in the year 2014 (Noe, Hollenbeck, Gerhart & Wright, 2006). For that matter, the TPP agreement creates the largest chances in support of the export firms to augment their level of sales.
On the other hand, while this “Asia-Pacific Pivot” together with the TPP foreshadows to augur well is favor of USA and Asia. The foreign policy, which is being applied in most of the trade agreements are having some of the legal implication domestically. Therefore, it should be noted that all the trade agreements ought to cover various features that are required by laws. As was the case with NAFTA, most of the Americans have a belief that TPP together with other trade agreements on the whole, shall bear adverse effects on manufacturers and retailers from the U.S. A. Most of the people who are opposing the TPP are proposing that the trade agreement shall permit MNCs (Multi-National Corporations) from every state member of the governments the duty of overturning local as well as national bylaws. Legal accomplishments such as these might with time restrict profits meant for the various businesses that are dully done domestic also, the agreements on free trade might similarly bear negative ramifications when it comes to the labor rights. Predominantly, most of the agreements made on the free trade regularly are short of enforceable labor fortifications. Grievances which are lodged at most of the International Labor Organization (ILO) are targeting national governments to abide by the standards of labor standards globally. The complaints are being brought about even if the or not the ministries of national labor are meeting their responsibilities towards to efficiently enforcing the laws on labor (Noe, Hollenbeck, Gerhart & Wright, 2006).Occasionally, most of the companies are moving highly paying professions to foreign states which are deemed to be having lower wage rates. The agreements on trade similarly permit companies towards disarming the drives of unionization through putting threats of moving jobs from states where there are widespread labor strikes.
Trade agreements effects on foreign and domestic market
Admittedly, lower cost of labor certainly is an incentive meant for companies to shuffle the facilities for production abroad to augment the profit base of such firms. Most of the workers from American companies are being laid off when businesses are relocated, whereas some of the workers are being oppressed by the lower wages that are being charged by companies. As firms are turning out to be multinational, whether they are producing within American region is unrelated to company's top managers together with the investors. The trade agreements are providing international companies with the chance towards outsourcing production in support of the U.S.A marketplaces (Noe, Hollenbeck, Gerhart & Wright, 2006).
For the time being, there are some legal issues which are supposed to be resolved. Thus, this shall be made complex through various free trade agreements such as TPP. The other example of the trade agreement is based on people's immigration, which is affecting people entering U.S.A. Just as the citizens of U.S.A are normally eagerly waiting for inclusive immigration reforms, several individuals who are opposed free trade agreements are questioning ways in which such reforms will have various impacts on undocumented employees. The time NAFTA was devised, its enthusiasts persisted that the economy of Mexico will be growing to an extent that it would be generating more competitive employment opportunities, thus trimming down immigration incentives. Provided the contemporary heated debate concerning immigration issues, it appears that the deal did not materialize.
When the tariffs were trimmed down in support of NAFTA, the government of U.S.A offered larger subsidies for the farmers hailing from America. This permitted the American farmers to destabilize Mexican farmers through exporting agricultural products hugely at incredibly lower prices. As a result, the farmers from Mexico got an encouragement of migrating to North America thus becoming undocumented employees (Iredale, 2005). Also, big companies such as Wal-Mart took advantage of the lowered tariffs as well as being permitted towards entering Mexico’s markets. Several workers from Mexico were relocated since most of their businesses were compelled shut down. In the long run, most of the relocated workers were similarly forced to shift northwards just like the American employees. Therefore, the Mexican farmers turned out to be undocumented America workers. Exclusive of immigration reforms, this cycle might go on thus encouraging illegal immigrants into the country. Occasionally, the legal languages concerning the agreements on free trade might never be explicit since they might be required to be otherwise might be misconstrued simultaneously.
Case Analysis
In Canadian Lumber Trade Alliance v. U.S., 517 F.3d 1319, 1327 case (Iredale, 2005), the producers from Canada took a legal action for the United States within the International Trade Court. The producers were claiming that since CDSOA( Continued Dumping and Subsidy Offset Act) is not specifying that it applies to commodities that are coming from NAFTA nations, it ought to be interpreted that it is never applicable for various products from the NAFTA states. A judgment was passed in support of the producers from Canadian. The International Trade Court mad a declaration that, following the Section 408 of the NIA, the CDSOA is not applicable to countervailing and antidumping duties evaluated on goods that are imported Mexico or rather Canada (Iredale, 2005). The case certainly is an instance of how precise and complicated language might be misunderstood thus causing the issues of a global dispute over negligible comprehensions.
In various cases, the producers from U.S.A filed legal cases in opposition to U.S. trade associates. A recognized evidence implicated farmers of catfish. The government of U.S. supported producers of catfish in U.S.A since the growth of catfish import in Vietnamese was overwhelming for the manufacturers of domestic catfish. The catfish from Vietnamese was comparable in taste to those from U.S.A even though much cheaper. Preferably, the government of U.S.A might have discontinued the importation of catfish from Vietnamese though the pronouncement importing catfish from Vietnam within the first place was as result of the global trade agreement. In an attempt of becoming a component of global trade marketplace, Vietnam indeed became part of the company economic collaboration that was involved in reducing tariff as well as non-tariff obstacle amongst its twenty-one member’s economies within Asia–Pacific area as well as APEC (Asia-Pacific Economic Cooperation) within 1998. Almost immediately to follow was the BTA(Bilateral Trade Agreement) signing between Vietnam and US during the year 2001 (Iredale, 2005). Bilateral Trade Agreement generated several opportunities in support of fishery farmers in Vietnam.

Just as indicated within the above graph, as from the year 1997, the fisheries of U.S.A were out-produced by their counterparts from Vietnam. During 1998 and 2000, it was later acknowledged like a pre-stages meant for the “catfish war”. In November,2001, the U.S. A struck through ensuring that law was passed which limited the use of “Catfish” name merely to a number of Ictaluruspunctatus family that substantially known with the entire U.S.A Besides, the catfish from Vietnamese was be labeled like “tra” otherwise “basa” (Cateora, 2008, ).“Food labeling ensures fair competition among producers, increases consumers’ access to information and reduces risks to individual consumer safety and health” (Cateora, 2008). Similarly, it is a helpful method meant for the clients towards distinguishing between the qualities of the product produced given out from the catfish.
Legal Concepts
To be brief, the government of U.S .provided myriad support to U.S. fisheries owing to the fact the government was having an obligation of ensuring the practices of fair competitive meant for its producers domestically. This happened at the times when the importers made threats to their capabilities of conducting business within various markets domestically. Just like NTB (Non- Tariff Barrier), the labeling laws on catfish effectively worked for the fisheries in U.S.A. NTB stands for organizational guidelines, policies as well as procedures which are described as qualitative and quantitative barriers. Non- Tariff Barrier directly or indirectly obstruct international trade within various countries (Cateora, 2008). In an ideal world, there are some instances where government of U.S.A has backed domestic firms regardless of their trade agreements.
The other issue which is plaguing the agreements on free trade certainly is the insufficient transparency. Such arrangements are usually negotiated for many years thus having broad impacts on the citizens of a particular nation. However most of the citizens are lacking say concerning the agreements terms and conditions. Furthermore, citizens are similarly not informed of the such agreement details. On the other hand, agreements on multilateral free trade together with the negotiations for investment are addressing wider range of the regularly composite and commercially susceptible segments within various ministries of country. So as to attain agreements, which every participate government may wholly accept the need of negotiators to stay in touch with one another who are having higher level of truthfulness, inventiveness together with joint conviction (Cateora, 2008).Scores of crusaders against the agreements of TPP are demanding that the text negotiation should be made public. At the same time as trust and candor are essential, the significant intent is supposed to be of the citizens' interest of a particular state members.
All in all, the agreements on free trade together with the business system on multinational are pertinent for the global economy and have been established to be advantageous in due course. WTO statistics indicate that in the year 2013, there were some 575 notifications concerning the agreements of regional trade had been attained by the business organization. Out of these notifications, 379 were in operations. Each WTO member is be owned by 13 diverse agreements on the preferential trade approximately (Czinkota & Ronkainen, 2013). For the larger scale, most of the agreements on free trade entails smaller economies alongside assisting in making such economies to be exposed to various economic development. When victorious, then the whole international economy might have benefits too.
Even though the agreements on multinational free trade are multifaceted as well as profoundly weighted having legalities which shall indisputably lead to global disputes. In this case, a global trade system shall be having within a longer period of time. Historically, it has been proved that better interconnectivity that most of the countries are having might lead to greater economically feasible as well as a world, which is peaceful. In most cases, in most of the agreement in support of free trade are having vast influences on the ways in which business is being carried out globally. Whereas such impacts might seem to additionally set hurdles on an already multifaceted worldwide legal systems, the trade agreements impact shall be generally helpful. There is no country; however large or small, poor or rich that can survive when there is no appropriate partnership with other nations. The future foreshadows that just like the global community has been growing bigger, the globe shall essentially turn out to be more intimately united.
The imminent trade agreements U.S.A with the Asia Pacific border nations together with the Euro Zone shall confidently strengthen the economy of U.S.A. Besides, this is offering opportunities in support of domestic companies to grow, make profits as well as ultimately securing peace. Whereas global law shall be influenced, the agreements on free trade impact shall augment international trade. In addition, the free trade agreements shall in actual fact enhance the associations between states alongside assisting in perfecting mushrooming of the trade system globally.







References
Cateora, P. R. (2008). International Marketing 13E (Sie). Tata McGraw-Hill Education.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Iredale, R. (2005). Gender, immigration policies and accreditation: Valuing the skills of professional women migrants. Geoforum, 36(2), 155-166.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2006). Human resource management: Gaining a competitive advantage.
Rauch, J. E., & Trindade, V. (2002). Ethnic Chinese networks in international trade. Review of Economics and Statistics, 84(1), 116-130.