What Is a Trade Dispute?

The so-called international trade disputes are disputes between international trade subjects in international trade activities.

International trade disputes

International trade disputes occur in the field of international trade;

The subject of international trade disputes is foreign;

The subject matter of the disputed legal relationship is located abroad or the act is completed abroad;

Legal facts that create, change or eliminate legal relationships occur abroad;

The law applicable to the settlement of international trade disputes may be determined by the parties through consultation, or the law of the country where a party is located, or the law of a third country, or international conventions or international practices;

There are various ways to resolve international trade disputes and the procedures are complicated.

There are many reasons for disputes and disputes in the international cargo trading business, which can be summarized into the following situations:

(1) Whether the contract is established, the interpretation of the national laws and international trade practices of the two parties are inconsistent;

(2) The terms of the contract are not clear enough, the two parties have different interpretations of the terms, and there is no uniform interpretation in practice;

(3) During the performance of the contract, factors beyond the control of the two parties have caused the contract to be unable to be performed or to be performed on time, and the two parties have different views on whether the contract can be cancelled or the contract can be postponed;

(4) The buyer does not open the letter of credit on time, does not pay the redemption note on time, refuses to accept the goods unreasonably, or does not dispatch the ship on time, or signs the contract of delivery, and specifies the delivery place, etc. when the buyer is responsible for transportation

(5) The seller does not deliver on time or does not deliver according to the quality, quantity and packaging stipulated in the contract, does not provide the appropriate documents stipulated in the contract and the letter of credit, etc.

(1) Ways to resolve disputes in international trade activities

Reconciliation

It means that in a civil dispute, the private prosecutor can negotiate with the defendant to reach a settlement agreement on a certain dispute before the court decides. After the court agrees, the private prosecutor can withdraw the lawsuit.

2. Mediation

It can be divided into court mediation, arbitration office mediation, and mass mediation (that is, out-of-litigation mediation), which is one of the important ways to handle civil cases and minor criminal cases. However, for disputes involving administrative management cases, mediation is not applicable. If the parties reach an agreement through mediation by the people's court, they shall prepare a mediation statement, which shall have legal effect after the mediation statement is served. If the parties reach a settlement through mediation by the arbitration institution, a written settlement agreement shall be signed. Mass mediation refers to mediation set up under the auspices of the People's Mediation Committee or relevant organs, enterprises, institutions, and organizations. This type of mediation has no legal effect. If the parties repent, they have the right to sue to the court. It applies to general civil disputes.

3. Arbitration

Refers to the agreement reached by the arbitration institution before the dispute or after the dispute, the dispute is submitted to the arbitration institution for trial, and the judgement or ruling shall be made.

4. Litigation

Refers to civil disputes (including international trade disputes), cases that are not arbitrated by arbitration agencies, and cases that are not subject to the review decision of the administrative organ. The parties may bring a lawsuit in court.

(2) Applicable legal procedures for resolving international trade disputes

1. Procedures applicable to cases involving administrative law (ie public law) disputes

Any dispute case involving administrative law, such as anti-dumping law, countervailing law, safeguard measures and other legal norms, the parties to the dispute shall submit a written application or lawsuit to the competent administrative agency, and the administrative agency shall handle the administrative procedure in accordance with relevant laws .

The parties disagree with the ruling and decision of the administrative organ, and may submit a written application or lawsuit to the administrative organ that has the right to reconsideration within the prescribed period, and the administrative organ shall handle the matter in accordance with the administrative procedures prescribed by relevant laws.

2. Procedures applicable to disputes involving civil law

In case of disputes involving civil law (such as product quality liability law, contract law and other laws and regulations), the parties to the dispute may bring a lawsuit to the court and the court will decide. However, if there is an arbitration agreement in an international trade contract dispute, it shall apply to an international trade arbitration agency with jurisdiction for arbitration. If there is no arbitration clause or agreement, it can be sued in the court.