Modernization of the Business Legal System

The business legal system is witnessing a continuous and accelerated modernization in a global economy which is characterized mainly by the development and expansion of international trade and the movement of international capital with a large and permanent movement. Indeed, commercial enterprises have crossed the borders and expanded their activities around the world in search of raw materials, cheap labor and markets in order to promote their products.

However, enterprises face the challenge of complying with national laws and regulations that differ from one country to another, posing a constant demand on international enterprises to develop their understanding of the types of legal systems that govern their operations before signing investment contracts, as well as their perception of the country’s culture, the behavior of its citizens, and the general political and economic environment.

On this basis, the legal system of the country, including business law, is of utmost importance to world trade and international corporations. The difference between legal systems would affect the attractiveness of a country as an external market or an appropriate area for investment, due to the nature of the trade practices control, the types of policies governing the economy, and the level of rights and obligations associated with commercial transactions, generally, the legal system governing business.

There is an urgent need to improve the legal framework to facilitate international trade and attract foreign investment, a good global knowledge of legal systems and rules thorough understanding of the legal rules governing contracts, in the field of trade, finance and business, which has become a necessity for international companies.

In addition, strengthening the harmonization of international trade laws with national laws, modernizing coordination through the preparation of legislative and regulatory texts in a number of key areas of commercial law, and the formulation of modern and equitable rules that respond to the accelerated development of trade transactions have become the priority of most countries involved in the dynamics of international economy and globalization, responding to the objectives and aspirations of the United Nations Commission on International Trade Law (UNICITRAL) and the World Bank efforts which have identified a set of indicators of doing business in several countries around the world and  measuring the extent to which the rules and regulations related to the business environment of countries match the specific indicators, therefore, becoming an incentive for countries to modernize their business legal systems.

On the other hand, bilateral and multilateral international conventions play an important role, concerning the development and protection of investments, the settlement of disputes, movement of capital, prevention of double taxation, use of alternative means of dispute settlement, and litigation, etc, in modernizing the business environment and preventing the negative consequences of the differences of legal systems between countries.

Thus, the greatest challenge remaining is to know how to harmonize the peculiarity of the national legal system of each country, which reflects its identity, civilization, history, culture and values with the need to keep pace with the international trading system to follow the evolution of the global economy with all its fluctuations and developments.

That said, the answer to the problems posed by the issues arising from the first axis, related to the modernization of the business legal system, would provide a multitude of solutions that would overcome the difficulties encountered at the national and international levels.

Items to discuss :

  1. Role of international agreements in investment protection.
  2. Dynamics of legal texts in a constantly evolving and developing business climate.
  3. The appropriateness of legal systems on trade and business issues with national and international requirements and contexts.
  4. The legislative initiative and its impact on the requirement for the amendments of investments related laws.
  5. The legal bases for the stimulation of  investment and provision of conditions for the prosperity of enterprises of all sizes.
  6.   Implementation of legal and institutional mechanisms for the qualification of enterprises and the stimulation of investment.
  7. The contribution of the criminal policy in improving the business climate (business criminal law).
  8. Role of economic actor in the legislative initiative, and its impact on the requirement for the modification of the legal system.
  9. The general economic system and its impact on the drafting of the business law.
  10. Modernization of legal system and legal security.