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									Law and Institutions of International
               Trade
              Class 12

             MGT 3860Z
             Daryl Hanak
                Agenda

1. Assignments and Papers
2. Trade & Environment
3. Trade & Labour
4. Private international law aspects




                 MGT 3860Z -- Fall 2005
Trade and Environment
                Trade and Environment

•   International environmental policy
    development and international trade
    policy development on different tracks --
    until the early 1990’s
    •   Tuna-Dolphin GATT Case (1991)
    •   Rio Earth Summit (1992)
        •   Framework Convention on Climate Change
        •   Convention on Biological Diversity
        •   “Precautionary Principle” recognized
        •   Trade provisions in environmental agreements
            •   Banning trade in “environmentally harmful” products


                            MGT 3860Z -- Fall 2005
          Trade and Environment

             Tuna Dolphin Case
•   Successful challenge of US laws aimed at
    protecting dolphins who are killed as a
    “by-catch” of tuna harvesting techniques
•   GATT case (pre-WTO), so never formally
    adopted
•   Caused a great deal of concern among
    environmental groups and inspired them
    to action on trade matters

                  MGT 3860Z -- Fall 2005
               Trade and Environment
•       In this context of rising environmental concern
        and activity, there is the negotiation of the
        NAFTA, with its significant debates in the US
•       Environmental issues:
    •     Trade agreements call for harmonization, so there will
          be a race to the bottom
    •     Firms, employment will move to where costs
          (including environmental regs) will be lower
    •     Lack of will by governments to enforce the
          environmental laws on the books – attracting
          investment and promoting competitive advantage
•       Environment ultimately found its way into the
        NAFTA

                          MGT 3860Z -- Fall 2005
            Trade and Environment

•   NAFTA environmental features
    •   Reference to “sustainable development”
    •   “Grandfathering” of existing environmental
        agreements if there is a conflict
    •   Environment article in investment chapter –
        don’t relax environmental laws in order to
        attract investment
    •   Parallel side accord on environmental
        cooperation – North American Agreement on
        Environmental Cooperation (NAAEC)

                     MGT 3860Z -- Fall 2005
           Trade and Environment
                        NAAEC
•   Obligation to effectively enforce your
    environmental laws – government-government
    dispute settlement
•   Citizen “submission process” to allow
    complaints about failure to “effectively enforce”
•   Innovative structure – quasi-independent
    Secretariat; Public advice institutionalized
•   Development of the institution has been
    remarkable, although the attitude of the three
    governments has not been consistent

                     MGT 3860Z -- Fall 2005
           Trade and Environment

                   Post NAFTA
•   As in many other areas, NAFTA still stands as a
    high water mark in the incorporation of
    environment into trade agreements
•   Canada and US bilateral trade agreements
    incorporate ideas from the NAAEC to a greater
    or lesser degree
•   Many other countries remain suspicious of the
    potential for protectionism that may be “hidden”
    in environmental language

                    MGT 3860Z -- Fall 2005
                 Trade and Environment
                                WTO
•       Includes references to sustainable development
•       Committee on Trade and Environment (CTE) established
        with a work program that allows countries to at least talk
        about issues like:
    •     Relationship between Multilateral Environmental Agreements
          (MEAs) and WTO obligations (conflicts, parties/non-parties
          issues)
             –   Kyoto Protocol (Framework Convention on Climate Change)
             –   Biosafety Protocol (Convention on Biological Diversity)
             –   Montréal Protocol (Convention on Ozone Depleting Substances)
             –   CITES (Convention on International Trade in Endangered Species)
             –   Basel Convention onn Transboundary Movement of Hazardous Wastes
    •     Eco-labelling programs
    •     “coherence” between international environmental negotiations
          and international trade negotiations

                                MGT 3860Z -- Fall 2005
            Trade and Environment

Development of Environmental Assessment of
              Trade Agreements
•   So, how can we look at trade agreements
    and decide what effects they may have
    •   Extrapolation from Trade Theories
    •   CEC project on the assessment of the NAFTA
    •   Strategic Environmental Assessments of Trade
        Agreements



                     MGT 3860Z -- Fall 2005
            Trade and Environment

•   The environmental effects of trade
    agreements can be classified as follows:
    •   Scale Effects
    •   Composition Effects
    •   Technique Effects
    •   Input Mix Effects
    •   Wealth Effects
•   All based on trade theories that we looked
    at earlier
•   What does the evidence show?
                     MGT 3860Z -- Fall 2005
               Trade and Environment
•   NAAEC -- Commission for Environmental
    Cooperation (CEC) -- project on trade and
    environment since 1996
•   CEC sponsored academic work resulting in a
    framework for the analysis of environmental effects
    •   Does NAFTA “perhaps”, “it depends”
           –    In the NAFTA context, even though there has been a
                number of years of experience with the NAFTA and the
                three countries keep relatively good statistics both on
                trade numbers and on environmental factors, the
                empirical evidence is not overwhelming.
    •   Trade and Environment Symposia -- October 2000,
        March 2003, December 2005


                           MGT 3860Z -- Fall 2005
             Trade and Environment
• Example of the difficulties in drawing conclusion about
  environmental effects of a trade agreement:
    • removal of tariffs on agricultural products should
       reduce the cost of the imported product and demand
       for that, should go up.
• However, it has been extraordinarily difficult to isolate the
  effect of the tariff reduction from things like:
    • normal economic growth that would have occurred
      anyway,
    • good marketing on the part of the exporters,
    • changes in consumer tastes,
    • increase in income levels in the importing country,
    • technological changes
    • etc. etc. etc..

                         MGT 3860Z -- Fall 2005
                 Trade and Environment
• Governments careful to avoid making any claims to say that a certain
  reduction in tariffs has caused a certain level of trade in a particular product,
  or even all overall an increase in exports to our trading partners.
• In Alberta's context, it is difficult to say that the NAFTA energy chapter
  "caused" the remarkable growth in the export of petroleum and natural gas
  to the US over the past 10 years. We can, however, say that trade
  agreements did contribute to this. How much it contributed to the growth is
  an open question.
• From the environmental perspective, the same problem arises. In a general
  sense, trade liberalization is assumed to contribute to the increased trade in
  a particular product, but the extent to which that trade agreement "cause" a
  particular environmental effect is not at all easy to determine.
• it would appear that the existence of a domestic environmental regulatory
  environment is probably be a better indicator of how the environment
  welfare under a trade agreement. In fact, "sustainable development"
  theories suggest that a high standards and environmental régime is a
  prerequisite for country to obtain the benefits from an international trade
  agreement



                                MGT 3860Z -- Fall 2005
              Trade and Environment
    Strategic Environmental Assessment of Trade Agreements
• Governments have struck upon the idea that they could make an
  "environmental assessment" of a trade agreement, modeled on
  environmental impact assessment of physical , commercial project.
• “Ex ante” instead of “ex post” assessments that were done with the NAFTA
  and the Uruguay Round
• Canada has been a strong promoter. Using the same sort of concept as and
  environmental impact assessment for an industrial project, Canada
  attempts to look at the future environmental effects of a trade agreements.
  Currently, the federal government has in place a process that is supposed to
  provide advice on trade negotiations as they are under way. Joined by the
  US and the EU
• Unfortunately, the difficulty establishing the linkage between a trade
  agreement and environmental effect is multiplied when trying to estimate
  the environmental effects of a trade agreement that has not yet been
  completely negotiated. Speculation about the outcome of negotiations on
  top of difficulty of assigning causality to the trade agreement



                              MGT 3860Z -- Fall 2005
Trade and Labour
                 Trade and Labour
• Some groups and individuals argue that trade agreements
  must address labour issues because
   • It is unfair to compete against produced from “low-cost” labour
   • Rich Western countries and their industries should not be allowed
     to exploit workers in developing countries, and trade agreements
     tend to promote this exploitation
• On the other hand, developing countries are suspicious of
  these types of statements because
   • labour is one of the few competitive advantages of that many
     countries have, and this should not be artificially be removed
• Even developed countries are unwilling to submit to some
  sort of external review of their labour policies because
   • countries have the sovereign right to establish their own labour
     standards

                           MGT 3860Z -- Fall 2005
                      Trade and Labour
• There is a basic question about the existence of empirical evidence of
  the impact of labour standards on trade, and the impact of trade
  agreements on individual country labour standards and laws
• Consider the example of Bangladesh or Haiti – do low labour
  standards for nonexistent labour laws and result in trade & economic
  success?
• Other basic economic considerations are involved when firms make a
  choice about locating manufacturing facilities in particular countries,
  or engaging in economic activities with those countries:
    –   Distance to market
    –   Infrastructure (roads, telephones, water, electricity)
    –   Workforce education
    –   Taxation
    –   Rule of law
    –   Certainty of contract

                                 MGT 3860Z -- Fall 2005
                 Trade and Labour
• OECD conducted a landmark study on the relationship
  between trade and labour standards
   – Lack of a strong correlation, with possible positive linkage between
     high labour standards and better international trade performance
International Labour Organization (ILO)
• Old organization, predates the GATT, WTO – established in
  1919 to deal with international labour issues
• Involves government, business and unions (tripartite
  structure)
• Many labour conventions adopted by the organization
• Review mechanism and complaint process. Complaints may
  be brought by unions, businesses and other governments.
• Problem? Effectiveness of enforcement– leading back to
  consideration of possible linkages to WTO

                           MGT 3860Z -- Fall 2005
             Trade and Labour
•   The ILO is “patient”, willing to wait for
    formalized cooperation with WTO
•   ILO has been conducting a study on the “social
    aspects of globalization”
•   No consensus within WTO to begin any kind of
    study of labour issues within the WTO
    organization




                     MGT 3860Z -- Fall 2005
                    Trade and Labour
Possible linkages between trade agreements and labour standards include:
• Trade sanctions, such as
    – Antidumping-like remedy for “social dumping”– the workers in the
      importing country (e.g. Canada) should not suffer the consequences of the
      policy choices in the exporting country (e.g. China)
    – “social countervailing duty” to level the playing field --since firms in the
      low labour standard jurisdiction would benefit from something that could
      be considered to be equivalent to a subsidy
but –
    – Opens possibility/incentive, for harassment of exports by importing
      countries
    – Burdens the WTO, or other dispute settlement processes in other trade
      agreements, with topics for which it/they has no expertise
    – Trade sanctions only indirectly, if at all, address main concern
    – Trade sanctions may be counterproductive (Already discussed economic
      criticisms of countervailing duties in trade in goods
    – Plus problems of sovereignty and the indirect elimination of a competitive
      advantage

                               MGT 3860Z -- Fall 2005
                 Trade and Labour
• Possible linkages between trade agreements and labour
  standards include:
• Labour cooperation agreements
   – Contain a general obligation to enforce existing labour laws, along
     with a commitment to support and enforce “core labour
     standards” (as included in the ILO conventions)
   – This approach has the benefit of preserving each country’s
     sovereignty, while still providing a forum to discuss labour
     matters
   – The continuing issue is how to address enforcement -- Alternative
     methods have been considered – could be a “fine”, could be
     “sunshine”, could be intergovernmental cooperation and capacity
     building
   – Canada promotes labour cooperation agreements in association
     with its bilateral trade agreements that it is currently negotiating.
     These agreements contain minimal obligations, but highlight
     potential areas of concern with respect to labour laws

                            MGT 3860Z -- Fall 2005
             Trade and Labour
• Possible linkages between trade agreements and
  labour standards include:
Consumer boycotts
   – “sweatshops” and celebrities may be vulnerable
     to these kinds of a highly publicized activities --
     Puff Daddy, Martha Stewart, NIKE
Labelling
   – Mandatory?
   – Who sets the standards for the label?

                     MGT 3860Z -- Fall 2005
Private International Law
       Private International Law
1. Corporate contract law
2. Business transactions
3. International contract law
4. Shipping terms




                  MGT 3860Z -- Fall 2005
          Private International Law
• Law of the relationship between private parties, as opposed
  to relationships between governments
• Sources -- the court cases involving international
  transactions, results of international arbitrations,
  conventions, treaties, model laws, domestic law
• legal framework composed of conventions, protocols,
  model laws, legal guides, uniform documents, as well as
  other documents and instruments, which regulates
  relationships between individuals in an international
  context (OAS)




                         MGT 3860Z -- Fall 2005
            Private International Law
•       Sovereignty causes problems when transactions
        cross borders
    –     Which country’s laws apply
    –     Which courts can take jurisdiction
    –     “conflicts of laws”
•       Domestic courts useful, but there are efficiencies
        from finding common principles
•       Need to bridge different legal traditions,
        cultures, history



                          MGT 3860Z -- Fall 2005
        Private International Law
International organizations and harmonization
• The public intenational institutions we have been
   discussing so far (WTO) are primarily
   intergovernmental organizations, where
   governments are the main parties, governing the
   relationship between governments
• In the private international law context the
   international institutions are often a
   government/private sector mixture
• There are also purely private sector initiatives
• Overlapping initiatives, but aiming at
   international harmonization

                    MGT 3860Z -- Fall 2005
          Private International Law
United Nations Commission on International Trade Law
(UNCITRAL)
•   “core legal body” within the UN system in the field of
    international trade law
•    Develops conventions and model laws to be adopted by
     countries
   • Conventions --Come into force when a sufficient
        number of countries ratify the convention
   • Model laws – international harmonization of domestic
        laws, can be done by countries individually or adapted
        to specific needs
http://www.uncitral.org/en-index.htm

                        MGT 3860Z -- Fall 2005
         Private International Law
Topics covered by UNCITRAL include:
•   Arbitration – convention on recognition awards,
    arbitration and conciliation rules, model law on
    international commercial arbitration
•   International sale of goods
•   Cross-border Insolvency
•   International payments
•   International transport of goods
•   Electronic-commerce
•   Public procurement and infrastructure development


                        MGT 3860Z -- Fall 2005
             Private International Law
The International Institute for the Unification of Private Law
   (UNIDROIT)
• “independent” intergovernmental organization,
  headquartered in Rome
• originally established in 1926 under the League of Nations
  and re-established in 1940. Currently 59 member states
• studies needs and methods for modernising, harmonising
  and coordinating private -- particularly commercial law --
  as between States and groups of States -- negotiates
  conventions
http://www.unidroit.org


                          MGT 3860Z -- Fall 2005
           Private International Law
Topics covered by UNIDROIT include
•   Uniform Law & Convention on the formation of contracts
    for the international sale of goods (1964)
•   Conventions on international financial leasing,
    international factoring (1988)
•   Principles of international commercial contracts (1994)
•   Convention on international interests in mobile
    equipment (2001)
•   Model franchise disclosure law (2002)




                       MGT 3860Z -- Fall 2005
       Private International Law
Hague Conference
•   intergovernmental organization
•   work for the progressive unification of the
    rules of private international law
•   negotiation and drafting of multilateral
    treaties
http://www.hcch.net/e/



                   MGT 3860Z -- Fall 2005
        Private International Law
Topics covered by the Hague Conference include:
•   Convention on the law applicable to
    international sales of goods (1955)
•   Convention on the Recognition and Enforcement
    of Foreign Judgments in Civil and Commercial
    Matters (1971)
•   Convention on the Law Applicable to Products
    Liability (1973)
•   Convention on the Law Applicable to Certain
    Rights in respect of Securities held with an
    Intermediary (2000)

                    MGT 3860Z -- Fall 2005
       Private International Law
World Bank Group
•   The World Bank is not a “bank” in the
    common sense.
•   It is one of the United Nations’ specialized
    agencies, and is made up of 184 member
    countries.
•   These countries are jointly responsible for
    how the institution is financed and how its
    money is spent.

                   MGT 3860Z -- Fall 2005
           Private International Law
There are several related elements in the World Bank Group:
• The "World Bank" is the name for the International Bank for
  Reconstruction and Development (IBRD) and the International
  Development Association (IDA). Together these provide low-
  interest loans, interest-free credit, and grants to developing
  countries.
• The International Finance Corporation (IFC) promotes private
  sector investment by supporting high-risk sectors and countries.
• The Multilateral Investment Guarantee Agency (MIGA) provides
  political risk insurance (guarantees) to investors in and lenders to
  developing countries.
• International Centre for Settlement of Investment Disputes
  (ICSID) settles investment disputes between foreign investors
  and their host countries.

                           MGT 3860Z -- Fall 2005
              Private International Law
International Centre for Settlement of Investment Disputes (ICSID)
• established under the Convention on the Settlement of Investment Disputes
  between States and Nationals of Other States (the Convention) which came
  into force on October 14, 1966.
• provides facilities for the conciliation and arbitration of disputes
  between member countries and investors who qualify as nationals of
  other member countries.
• Recourse to ICSID conciliation and arbitration is entirely voluntary.
  However, once the parties have consented to arbitration under the
  ICSID Convention, neither can unilaterally withdraw its consent.
• Moreover, all ICSID Contracting States, whether or not parties to the
  dispute, are required by the Convention to recognize and enforce ICSID
  arbitral awards.
• NAFTA Chapter 11 cases have been conducted under the ICSID rules
• Canada is not a Party to the ICSID Convention
http://www.worldbank.org/icsid/

                             MGT 3860Z -- Fall 2005
         Private International Law
Organization of American States (OAS)
•   Department on International Law, plays a central role in
    the harmonization and codification of Private
    International Law in the Western Hemisphere.
•   Conferences on Private International Law, which are held
    approximately every four to six years. Known by its
    Spanish acronym -- CIDIP
•   Ultimately develops conventions for the members of the
    organization
http://www.oas.org/



                       MGT 3860Z -- Fall 2005
         Private International Law
Some topics covered by the OAS include:
• Inter-American Convention on the Law applicable to
  International Contracts.
• Inter-American Convention on Conflicts of Laws
  Concerning Commercial Companies.
• Inter-American Convention on Contracts for the
  International Carriage of Goods by Road.
• Inter-American Convention on Conflict of Laws
  concerning Bills of Exchange, Promissory Notes and
  Invoices.




                       MGT 3860Z -- Fall 2005
       Private International Law
Uniform Law Conference of Canada (ULCC)
•   founded in 1918 to promote harmonization
    of laws in Canada
•   Commercial Law Strategy to modernize
    and harmonize commercial law in Canada,
•   Recommendations for incorporation of
    international conventions into Canadian
    law – model laws


                  MGT 3860Z -- Fall 2005
                   INCOTERMS
INCOTERMS
•   First published in 1936 by the International Chamber of
    Commerce (ICC) Since that time, there have been six
    different revisions and updates to the Incoterms.
•   ICC -- “voice of world business championing the global
    economy as a force for economic growth, job creation and
    prosperity”
•   INCOTERMS -- “Rules at the core of world trade”
•   "Incoterms" -- abbreviation of “International Commercial
    Terms”
•   13 standardized terms for when the property and the risk
    transfer from the seller to the buyer

                         MGT 3860Z -- Fall 2005
                        INCOTERMS
• Intended to alleviate or reduce confusion over interpretations of
  shipping terms, by outlining exactly who is obliged to take control of
  and/or insure goods at a particular point in the shipping process,
  including obligations for the clearance of the goods for export or import,
  and requirements on the packing of items.
• Incoterms are used quite frequently in international contracts, and a
  specific version of the Incoterms should be referenced in the text of the
  contract.
• they are not meant for every type of contract. Incoterms define the
  respective roles of the buyer and seller in the arrangement of
  transportation and other responsibilities and clarify when the ownership
  of the merchandise takes place. They are used in conjunction with a sales
  agreement or other method of transacting the sale.
• the terms used in a contract state exactly when the shipper unloads and
  relinquishes obligation, and when the buyer takes over for carriage and
  insurance. They are not meant to replace statements in a contract of sale
  that outline transfers of ownership or title to goods. Therefore, the
  Incoterms may not be of use when looking to resolve disputes that may
  arise regarding payment or ownership of goods.

                              MGT 3860Z -- Fall 2005
                     INCOTERMS
1. XW -- EX WORKS (…named               8.    CIP -- CARRIAGE AND
   place)*                                    INSURANCE PAID TO
                                              (…named place of destination)*
2. FCA -- FREE CARRIER (…named
   place)                               9.    DAF -- DELIVERED AT
                                              FRONTIER (…named place)*
3. FAS -- FREE ALONGSIDE SHIP
   (…named port of shipment)*           10. DES -- DELIVERED EX SHIP
                                            (…named port of destination)
4. FOB -- FREE ON BOARD
   (…named port of shipment)            11. DEQ -- DELIVERED EX QUAY
                                            (…named port of destination)*
5. CFR -- COST AND FREIGHT
   (…named port of destination)         12. DDU -- DELIVERED DUTY
                                            UNPAID (…named place of
6. CIF -- COST, INSURANCE AND               destination)*
   FREIGHT (…named port of
   destination)*                        13. DDP -- DELIVERED DUTY
                                            PAID (…named place of
7. CPT -- CARRIAGE PAID TO                  destination)*
   (…named place of destination)


                           MGT 3860Z -- Fall 2005
                      INCOTERMS
•       “ex works” means that the seller delivers when
        he places the goods at the disposal of the buyer
        at the seller’s premises or another named place
        and (i.e. works, factory, warehouse, etc.) not
        cleared for export and not loaded on any
        collecting vehicle
    –     Minimum obligation for the seller, and the buyer has
          to bear all costs and risks involved in taking the goods
          from the seller’s premises




                           MGT 3860Z -- Fall 2005
                      INCOTERMS
•       “Free on Board” means that the seller delivers
        when the goods pass the ship’s rail at the named
        port of shipment
    –     Buyer bears all costs and risks of loss or damage to the
          goods from that point.
    –     Seller must clear the goods for export
    –     only used for sea or inland waterway transport




                           MGT 3860Z -- Fall 2005
                      INCOTERMS
•       “delivered duty paid” means that the seller
        delivers the goods to the buyer, cleared for
        import, and not unloaded from any arriving
        means of transport, at the named place of
        destination.
    –     Seller bears all the costs and risks involved in bringing
          the goods to the buyer, including any customs
          formalities, customs duties, taxes and other charges for
          import in the country of destination
    –     Represents maximum obligation on the seller




                           MGT 3860Z -- Fall 2005
                              INCOTERMS
• EXW - Ex Works -- Title and risk pass to buyer including payment of all transportation and
  insurance cost from the seller's door. Used for any mode of transportation.
• FCA - Free Carrier -- Title and risk pass to buyer including transportation and insurance
  cost when the seller delivers goods cleared for export to the carrier.Seller is obligated to
  load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to recieve the
  Seller's arriving vehicle unloaded.
• FAS - Free Alongside Ship --Title and risk pass to buyer including payment of all
  transportation and insurance cost once delivered alongside ship by the seller. Used for sea
  or inland waterway transportation. The export clearance obligation rests with the seller.
• FOB - Free On Board and risk pass to buyer including payment of all transportation and
  insurance cost once delivered on board the ship by the seller. Used for sea or inland
  waterway transportation.
• CFR - Cost and Freight -- Title, risk and insurance cost pass to buyer when delivered on
  board the ship by seller who pays the transportation cost to the destination port. Used for
  sea or inland waterway transportation.
• CIF - Cost, Insurance and Freight -- Title and risk pass to buyer when delivered on board
  the ship by seller who pays transportation and insurance cost to destination port. Used for
  sea or inland waterway transportation.
• CPT - Carriage Paid To -- Title, risk and insurance cost pass to buyer when delivered to
  carrier by seller who pays transportation cost to destination. Used for any mode of
  transportation.

                                      MGT 3860Z -- Fall 2005
                              INCOTERMS
• CIP - Carriage and Insurance Paid To --Title and risk pass to buyer when delivered to
  carrier by seller who pays transportation and insurance cost to destination. Used for any
  mode of transportation.
• DAF - Delivered at Frontier -- Title, risk and responsibility for import clearance pass to
  buyer when delivered to named border point by seller. Used for any mode of
  transportation.
• DES - Delivered Ex Ship -- Title, risk, responsibility for vessel discharge and import
  clearance pass to buyer when seller delivers goods on board the ship to destination port.
  Used for sea or inland waterway transportation.
• DEQ - Delivered Ex Quay (Duty Paid) -- Title and risk pass to buyer when delivered on
  board the ship at the destination point by the seller who delivers goods on dock at
  destination point cleared for import. Used for sea or inland waterway transportation.
• DDU - Delivered Duty Unpaid -- Title, risk and responsibility of import clearance pass to
  buyer when seller delivers goods to named destination point. Used for any mode of
  transportation. Buyer is obligated for import clearance.
• DDU - Delivered Duty Unpaid -- Seller fulfills his obligation when goods have been made
  available at the named place in the country of importation
• DDP - Delivered Duty Paid -- Title and risk pass to buyer when seller delivers goods to
  named destination point cleared for import. Used for any mode of transportation.
      • Note: EXW, CPT, CIP, DAF, DDU and DDP are commonly used for any mode of transportation.
        FAS, FOB, CFR, CIF, DES, and DEQ are used for sea and inland waterway.

                                     MGT 3860Z -- Fall 2005
                INCOTERMS
•   Here are three examples of correct use of
    Incoterms:
    •   FCA Kuala Lumpur Incoterms 2000
    •   FOB Liverpool Incoterms 2000
    •   DDU Frankfurt Schmidt GmbH Warehouse 4
        Incoterms 2000




                    MGT 3860Z -- Fall 2005

								
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