National Center for State Courts

 

Improving Justice through Leadership
and Service to the Courts

     

  


International

International Trade Bills
Enforcement of Foreign Orders
General Agreement on Trade Services (GATS)

Issue:    International Trade Bills

Impact:            H.R. 3005 includes the potential for the creation of procedures whereby unknown, ad hoc, international tribunals set up under Trade bills could become courts of last resort for numerous commercial disputes as well as sensitive national public health and welfare issues. It particularly poses risks to the finality of judgments, which is so important to our system of justice.

Summary: H.R. 3005 provides for procedures and protocols for future international agreements in world trade. It contains provisions allowing for international arbitration tribunals to resolve disputes involving "foreign investors" and the U.S., which allows them to circumvent federal and state judicial procedures similar to several documented experiences with Chapter 11 of NAFTA.

 

Position: Trade bills and agreements should be changed to preserve the integrity of the courts of this country and their ability to adjudicate fairly and finally the rights of all parties who seek justice in them.

References:
  • Letter from Chief Judge Wagner to the U.S. Senate on 5/15/2002
Support Materials: Chapter 11 of the North American Free Trade Amendment, NCSC Issue Brief, Vol. 3, No. 3, May 2002

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International
Issue:    Enforcement of Foreign Orders

Impact:            The draft treaty would require that many issues with international ramifications, which have traditionally been state court issues, would move to federal courts, e.g., child custody cases.

Summary: Negotiations are underway on a treaty to deal with international enforcement of court orders, the details of which will have serious implications for state court jurisdiction over family and contract cases. E-commerce and increased movement of families confound historical rules across national borders.

Position:

No formal position

References:
  • Letter from Chief Justice VandeWalle to Jeffrey Kovar, State Department, June 14, 2001
Support
Materials:
Potential Impact of the Proposed Hague Judgments Convention on State Courts in the United States, Professor Paul R. Dubinsky, New York Law School, (July 2002)


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International
Issue:    General Agreement on Trade Services (GATS)

Impact:            GRO's concerns on the effects of international trade on state courts has expanded to the existing General Agreement on Trade Services (GATS), which was agreed to by the U.S. as part of the 1994 agreement setting up the World Trade Organization (WTO). Specifically, legal services are covered by the GATS agreement and there are ongoing negotiations to " liberalize" licensing requirements for foreign lawyers to practice law in the U.S.

Summary: See "Impact" above.

Position: No formal position

References:
  • GATS, Legal Services, and Bar Examiners: Why Should You Care? by Laurel Terry, International Bar Association GATS Handbook
Support
Materials:
No additional materials


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