Question

Please answer all four (4) questions utilizing textbook, and independent research if necessary. Provide 'complete answers' to the questions - indicating your knowledge of the subject matter supported by specific details and examples. All sources MUST be cited.  

Question 1. What is meant by the term sovereignty? Why is it significant in international law?

Question 2. Define the most-favoured-nation rule and describe two exceptions to the rule that are allowed by the GATT.

Question 3. What are the two main side agreements established under NAFTA? Describe their impact on trade between Canada, United States and Mexico.

Question 4. What is Brexit? What are some of the reasons behind Brexit?

Answer 1

1. Sovereignty- It means a governing body that has supreme authority to govern a polity without any outside interference in any manner. It is generally meant for a state or a country. Each country wants to be a sovereign state and respected in the same manner or in other words no country wants to take any decision under pressure or influence of any other powerful member state.

It is very important in international law as ethically each state should be free and independent to take decisions for its welfare. If sovereignty was not important, economically and militarily powerful nations would force a smaller or weaker nation to accept its orders or dictates even if it goes against the welfare of the smaller or the weaker country.

2. MFN ( Most Favored Nation ) - rule of the WTO states that each country would consider every other country to be its Most Favored Nation in order to eliminate discrimination in international trade.

Following are the two exceptions to the MFN rule:-

( I ) Regional Integration:- Countries may give preference to trade with neighbouring countries if there are regional trade agreements between the nations. The sole aim of this exception is encouragement of regional trade.

( II ) Exceptions to certain developing and least developed countries in order to spur economic growth in the industrially backward countries.

3. Following are two main side agreements to NAFTA:-

( I ) North American Agreement on Environmental Cooperation. ( To encourage cooperation for improvement of environment )

( II ) North American Agreement on Labor Cooperation. ( To encourage cooperation on issues such as mutual respect for labor laws etc. )

4. Brexit is a term coined for Britain's exit from the 28 member European Union.

The proponents of Brexit in Britain thought that they had lost a lot of domestic jobs due to mobility of labor as well as trade. According to them, Britain's exit would help save jobs as well as higher budgetary contributions to the EU.