Trading in the global market means that transactions are done with businesses located in different parts of the world. There are quite a number of challenges that businesses and organizations face while doing transactions based on the CISG treaty.
By joining the United Nations Conventions on Contracts for the International Sale of Goods (CISG), there are several organizations and businesses that have widened their ability to face these challenges with victory.
According to the argument posed by Flechtner (1), this consortium is one of the best in ensuring that businesses realize the required international commercial laws.
It is best known for helping its member businesses and organizations to avoid or reduce the legal obstacles connected to international trade and commerce. It unifies the laws and makes them easy to understand and interpret, and also redefines the whole contract.
The advantage is that the law is upgraded depending on the conditions of the global economy. The treaty does so in a bid to ensure that all businesses that are under it enjoy all the benefits associated with its membership.
Aliano (1) explains the implications for any business that wishes to operate within the countries that have not agreed to the United Nations Conventions on Contracts for the International Sale of Goods (CISG). Ever since it was started in 1980, the treaty has succeeded in bringing down the high number of obstacles that businesses face in their quest for profits through the global economy.
Businesses enjoy benefits of fair international trade laws. The treaty demands no written laws. In as much as it acts as a union, there are challenges and hardships associated with it. It is complicated and may sometimes be the main reason why some countries have not yet adopted to it.
There is a tough implication especially for countries that attach more importance to their local laws. In some cases, these laws might not conform to what the treaty laws have stated. In this case, it is better for the business not to accept to trade under the treaty. Brazil, UK and South Africa are some of the countries that do not trade under CIGS.
Implications are that they are not protected by the CISG law and as such, they trade on their own. In addition, they have no treaty to aid in ratifying the international trade law. This makes sure that the laws of their mother countries do not contradict with the laws of the treaty.
In cases whereby the CISG laws are likely to interfere with the local trade laws for a certain country, it is the highest point that the businesses shift to other different treaties. According to Vollmers (1), the CISG laws apply only for transactions that are conducted internationally.
This implies that a business has the freedom to choose whether to adapt to the United Nations Convention on Contracts for the International Sale of Goods. This gives room for organizations to trade without being forced into unnecessary laws. Businesses that are not bound by local law would rather choose to work under the CISG treaty.
This is due to the fact that it helps in closing the gaps that trade might bring to businesses, as well as the obstacles that businesses face in the course of trading. The latter scenario may be pronounced largely on a global scale.
Works Cited
Aliano, Tiffany. United Nations Convention on Contracts for The International Sale of Goods (Cisg). Socyberty, USA. 2011. Web.
Flechtner, Harry. United Nations Convention on Contracts for the International Sale of Goods. (1980). 2008. Web.
Vollmers, Todd. The U.N. Convention on Contracts for the International Sale of Goods. U. S department of Commerce, USA. 2002. Web.