The success of international business associated with trade relations among foreign countries and with different business transactions is based on the correlation of the countries’ laws and regulations connected with these business relations.
From this perspective, it is important to focus on laws and regulations regarding business transactions which are followed in Canada and Brazil taken into account the particular features of the negotiation process, WTO impact and authority, and differences according to the private and governing laws.
Laws and Regulations in Canada
Canada’s business transactions and the aspects of international trade are based on a range of the developed laws and regulations.
Thus, being the member of many trade organizations and treaties, Canada provides a variety of possibilities for foreign businessmen to work in the country successfully because of following a lot of rights and obligations (Meredith and Gauthier).
The success of the business transaction is based on the effectiveness of the negotiations conducted because of the necessity to set clear purposes for business transactions according to the current laws and regulations to meet the interests and legal obligations of both the parties.
The negotiations are important to discuss all the basic points of the treaty and to pay attention to such factors as the number of areas involved in the treaty and the aspects of investment protection.
Being a member of the World Trade Organization (WTO), Canada is obliged to follow the principles of the international trade set by WTO and meet the requirements of protection agreements.
According to WTO standards, Canada uses different trade remedy strategies such as anti-dumping and countervails (“Doing Business in Canada” 90). The authority of WTO in Canada is significant because of the organization’s impact on the majority of the government policies associated with business transactions.
However, basing on the government policies, Canada often runs risks to meet the organization’s requirements. That is why, the choice of the governing law can result in the negative consequences for the foreign party (“Doing Business in Canada” 90).
Today, Canada is inclined to develop international trade relations only after the prolonged process of negotiating the free trade agreements. The particular features of the private law are also discussed during the negotiations, but its effectiveness in relation to regulating the problematic issues between large organizations is still controversial.
Thus, the private law is used to regulate the conflict between small parties (“Doing Business in Canada” 90-93).
Canadian laws and regulations associated with business transactions and trade provide measures to control the movement of goods and services, regulate the taxation, state the import and export requirements according to Export and Import Permits Act, and guarantee trade remedies according to Special Import Measures Act (“Doing Business in Canada” 95-96).
Laws and Regulations in Brazil
Brazil’s relations with foreign countries depend on a lot of national laws and international treaties to regulate the business transactions within the country. The increased participation of Brazil in the global business resulted in negotiating much to sign international contracts and treaties.
Negotiations before developing and signing the definite treaty are important in Brazil in order to protect both the parties from the unexpected results of the cooperation or trade and from possible violating measures. The principles of the Brazil’s international trade are derived basing on the main world strategies and norms.
Brazil is the member of WTO and other economic and trade organizations that is why the interests of the foreign businessmen are protected with references to the world standards, and the development of international trade is influenced significantly in relation to the adopted world regulations (Grebler). Thus, WTO can be discussed as the power to control the business transactions in Brazil.
It is important to note that parties involved in the international trade issues within the country can refer mostly to the governing law. In spite of the fact Brazil belongs to the United Nations Convention on Contracts for the International Sale of Goods and the country is the participant of a lot of international trade organizations, the principles of the private law are not developed and followed in the country strictly (Bonell).
Thus, the business parties in Brazil are almost deprived of the right to choose following the governing or private laws according to the case’s aspects. That is why, it is almost impossible to speak about any implications of choosing private law to seek ratification in the country (Farnsworth).
To operate within the Brazilian market environment effectively, it is necessary to refer to such forces as the country’s law, principles of the world trade organizations such as WTO and the United Nations Convention on Contracts for the International Sale of Goods (CISG), and the domestic law (with few references to the private international law) (Grebler).
There are a lot of legal issues and uncertainties while conducting negotiations and signing contracts between the parties in Brazil because only Brazilian governing laws have the real force. Moreover, these aspects should be correlated with the impact of CISG.
Works Cited
Bonell, Michael. “The CISG, European Contract Law and the Development of a World Contract Law”. American Journal of Comparative Law 56.1 (2008): 18-24. Print.
Doing Business in Canada. 2012. PDF file. Web.
Farnsworth, Allan. Contracts. New York: Foundation Press, 2008. Print.
Grebler, Eduardo. “The Convention on International Sale of Goods and Brazilian Law: Are Differences Irreconcilable?” Journal of Law and Commerce 25.6 (2005): 68-89. Print.
Meredith, Katie, and Alexandre Gauthier. Canada’s International Trade and Investment Agreements: A Variety of Options. Web.