The Illinois Business Law Journal

Nationalization of Resources in Venezuela and Beyond: Do Corporations have Recourse?

Nationalization keeps multinational corporations and investors up at night. Simply put, nationalization is an exercise of sovereignty where a country seizes private property, resources, or other investments on its soil. The country usually decides whether to pay compensation to former owners after seizure. The recent nationalization of oil projects by Venezuela begs the question: what recourse do corporations like Exxon-Mobil (Exxon) have if their investments are nationalized?

The Existing Labor and Environmental Agreements in NAFTA

As the Ohio Democratic primary approached, Barack Obama and Hillary Clinton pulled out all the stops to secure the few remaining undecided votes in the Democratic Presidential race.  Ohio’s economy has been struggling, and the candidates saw a convenient scapegoat to blame for its industrial decline.  Both candidates vowed to force Mexico and Canada to include labor and environmental agreements into the North American Free Trade Agreement (NAFTA) or risk the US pulling out of the agreement all together. [1] The sharp anti-trade rhetoric had some obvious omissions. NAFTA more than tripled trade between US, Canada, and Mexico and like all barrier reducing trade agreements, has had a beneficial long-term impact on all three economies. [2]  It was supported by politicians and economists of all political leanings, including President Clinton who pushed it through Congress. [3]  But perhaps the most glaring omission in Obama’s and Clinton’s speeches is that NAFTA already includes robust, skillfully crafted labor and environmental agreements. [4]  The same type of agreements they supported in other trade pacts.

The Electronic Trading System – the Sleepless Futures Markets

  In 1997, Joseph B. Dial, then Commissioner of the CFTC, in a meeting with futures industry leaders, envisioned that screen-based systems would threaten open outcry, over-the-counter order matching systems.[1] A decade later, on October 26, 2004, the Commissioner of the CFTC addressed an intellectual property panel that one of the most significant trends affecting the futures industry is technology. Indeed, the turn of the century witnessed a new era of electronic commerce in the commodities and futures trading world. One important factor contributing to the change is attributable to State Street Bank and Trust Co. v. Signature Financial Group, Inc. that cleared away the last hindrance for corporations to invest in innovative process technologies by validating business process patents. [2] Since State Street Bank & Trust, the volume of trading on electronic exchanges has grown ten times larger than the open outcry trading.[3]

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Fidel Castro Has Finally Stepped Down: Now What Should Be Done About That Pesky Trade Embargo?

I. Introduction

Fidel Castro recently stepped down as president of Cuba. Castro's health, not the 46 year trade embargo, was the primary reason for Castro's statement that he "would not seek to retain his post." [1] Anyone seeking a radical change in the policies of Cuba may have to wait indefinitely, as Fidel Castro's younger brother Raul quickly supplanted him. In a ceremony, on February 24th, Fidel's younger brother was formally designated as Fidel's successor as the head of Cuba's Council of state. [2] Furthermore, Raul stressed that although Fidel will step down as president, Fidel will continue to be "consulted on important decisions, especially on those relating to defense, foreign policy and the economy." [3] However, American politicians and the public have yet another opportunity to consider the continuing effects of the trade embargo placed upon Cuba nearly 50 years ago. Clearly, Fidel was able to defy the wishes of the United States for several decades without giving in to pressure to relinquish Cuba's adherence to Communist ideology. Unfortunately, the embargo devastated Cuban citizens. In a country where the average wage per month is $20, more U.S. aid needs to be given. [4] Considering the current economy of Cuba, is the embargo still a "humane method of coercion" against Cuba, or is it detrimental to yet another generation of Cubans? [5]

The Changing Korean Legal Market

I. Introduction

With so much possibility, South Korea’s legal market is virtually untapped, especially considering that it is today’s 10th largest economy in the world. [1] This is because South Korean law prohibits foreign lawyers from becoming licensed to practice within the country and also prohibits foreign law firms from establishing branches within South Korea. [2] South Korean lawyers not only have a very different legal education system, but also have an interesting monopoly within the legal market of Korea.  This long insulated legal system is about to change.  There has been recent proposed legislation to open the Korean legal market through the Foreign Legal Consultants Act. [3] This will most likely have world-wide affect and forever change how the legal system in Korea operates.

Chinese Commerical Arbitration – Alternative Approach for Resolving International Disputes

The New York Times characterizes China’s court system as a “Chinese legal netherworld.”[1] Many foreign business memoirs are packed with horror stories about corrupt judges and unenforceable court decisions.[2] For foreign investors, arbitration offers a way to bypass much of the corruption and local protectionism existing in court systems.[3] In 2005 China’s arbitration commissions handled more than 1,000 disputes involving foreign partners.[4] With some improvements, Chinese arbitration will be the first choice for resolving international business disputes in China. This article intends to address the history and structure of the arbitration system in China and how it has developed in recent years to meet the needs of constant economic development.

Free Trade Agreements and US Immigration Law

Since the implementation of the General Agreement on Tariffs and Trade (GATT) in 1947, the United States has signed several free trade agreements (FTAs) that have reduced barriers to international trade. [1] While these agreements traditionally focused on reducing barriers to the free flow of goods, services, and investments, more recent agreements have included provisions that directly affect US immigration law by creating additional nonimmigrant visa classifications to those available under the Immigration and Nationality Act. [2]

Outsourcing Pregnancy?

I. Outsourcing

It makes good business sense to outsource operations.  It cuts down on costs, delivers lower prices to consumers, and brings job opportunities to poorer countries.  So why not also outsource pregnancy?  India, already known as an outsourcing base, is also the growing center for surrogate pregnancy.  India is hardly restricted through legislation, as there are no laws that govern surrogacy.[1]   No part of the fertility industry is regulated, although the Indian Medical Council does issue nonbinding guidelines for involved parties.[2]

Since 2002, commercial surrogacy has been legal in India.[3]  The only laws that India currently has in place concerning women and their infants address maternity leave and breastfeeding.[4]  There is proposed legislation to help regulate surrogate pregnancy, but the government has been slow to act.[5]  Already, outsourcing surrogate pregnancy, or “reproductive tourism” has become a booming business of over 445 million dollars a year.[6]

Chinese Anti-Monopoly Law: a Pretext for Local Protection or an Aspiration to Comply with the International Norm?

Chinese anti-monopoly law (“AML”) was enacted on August 30, 2007, which is the first comprehensive competition law in China’s history. [1] The Chinese AML was drafted within the context of three principal competition concerns: regional monopolies (local protection); sectoral monopolies by Chinese firms, including state-owned enterprises (administrative monopoly); and a perception of alleged abuses of dominant positions by some multinationals.[2] Even though the EU and US commended the final enactment of the AML, there is still a concern among foreign enterprise that the AML is aimed at foreign investors and really acts a pretext for the protection of local economy and state-owned enterprise.

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The VW Law and the Future of European Takeovers

I. Introduction

On October 23, 2007, the EU court made the decision to strike down what was commonly known as the “VW Law”. [1]  This decision was surprising because it overturned a 47 year old rule that had previously protected the German company Volkswagen from possible takeover.[2]  This kind of protectionism has been common in government related companies throughout the European Union.[3]  This widely-discussed decision has opened the door for a very different future for Volkswagen and has also shown that the European Union is serious about policing its member nations.