Topic > International Trade Law - 1610

INTRODUCTIONInternational trade and investment are commercial operations of fundamental importance to economic development that pose unique legal challenges. Cross-border transactions require the conclusion of multiple contracts (e.g., relating to the sale of goods, transportation, financing, dispute resolution), each of which has one or more extraneous elements; International investments require a dedicated legal framework to ensure the predictability of their various phases. The adoption of a uniform trade text is commonly considered the most effective method to ensure the adoption of modern, efficient and predictable legislation. Recognizing these needs, contracts for the sale of goods are widely recognized as the backbone of international trade and therefore attempts to create a uniform trade text began as early as 1930. The CISG is the culmination of decades of negotiations and discussions on harmonization International Sales Law. The CISG is a multilateral treaty that regulates the rights and obligations of parties to international sales contracts. This convention was designed to create uniform rules to govern contracts for the international sale of goods, thereby eliminating legal barriers in international trade. The CISG came into force over 30 years ago, in 1980. In September 2013, the CISG was ratified by 80 states around the world. It has been widely established in the academic literature as one of the most successful harmonization projects in the field of international trade law. The EAC is a regional organization whose member states are Kenya, Uganda, Tanzania, Rwanda and Burundi. “The Treaty establishing the East African Community was signed in Arusha on 30 November 1999. The Treaty entered… halfway through the document… the states. Many scholars have highlighted the fact that there are some issues addressed by the regional sales law that are not addressed by the CISG. One of the book's authors, Ferrari, argues that "there is no reason to believe that in the regions and countries where the CISG is in force, there may not be room for regional unification efforts." Therefore, from the above arguments one could conclude that enacting a regional law on the sale of goods would not be better but that it would be possible to enact a regional law on the sale of goods and at the same time adopt the CISG. Both instruments have their strengths and the adoption of the CISG does not mean that States cannot enact a regional sales law instrument. It would allow the EAC member to have the best of both worlds so to speak and would be of great benefit to the EAC member states.