Two Trade-Related Treaties Sent to Senate for Ratification
President Obama sent to the Senate Feb. 10 for ratification the following two international agreements.
Export Financing. The United Nations Convention on the Assignment of Receivables in International Trade, which was concluded in December 2001 and signed by the U.S. two years later, facilitates the use of cross-border receivables financing by (a) recognizing the legal effectiveness of a wide variety of modern receivables financing practices, (b) overriding certain contractual obstacles to receivables financing, and (c) providing clear, uniform conflict-of-laws rules to determine which country's domestic law governs priority as between the assignee of a receivable and competing claimants. A statement from the president said that widespread ratification of this convention would help U.S. companies, especially small and medium-sized enterprises, obtain much-needed working capital financing from U.S. banks and other lenders to export goods.
Electronic Communications. The UN Convention on the Use of Electronic Communications in International Contracts, which was concluded in November 2005 and entered into force March 1, 2013, sets rules validating and facilitating the use of electronic communications in international business transactions. The president said this convention will promote legal uniformity and predictability, and thereby lower costs, for U.S. businesses engaged in electronic commerce. Accession by the U.S. should encourage other countries to become parties as well, the president added, and having a greater number of parties should facilitate electronic commerce across borders.