At the keynote meeting on Incoterms 2020, organized this week by the Argentine Chamber of Commerce in Buenos Aires, when talking with Customs News, Dr. Burghard Piltz, German arbitrator and chairman of the executive committee of ELArb (European-Latin American Arbitration Centre), one of the authors of Incoterms 2020, said: “Argentina must internalize long-term rules, it is not an autonomous country to restrict itself".
He also noted: “The country has been involved in international trade for a long time. It is a member of Mercosur, which means that it is seeking to connect beyond its own borders. A country interested in foreign trade cannot avoid contact with Incoterms. These rules govern 90 percent of import and export contracts. Globalization indicates that there will be more exchanges between countries. And Incoterms establish the obligations of the buyer and seller in international sales.".
The German expert explained that “The great advantage of Incoterms is that they are standardised clauses that apply worldwide. FOB and FCA clauses have the same content in Argentina, Japan, Lithuania… The aim is precisely to make Incoterms a uniform basis for these international discussions.”
He also clarified that “lIncoterms 2020 are nothing new. The ICC tried to adapt the rules to current practices, as there have been changes in this regard over the past ten years. On the other hand, the organization sought to make the application of the rules easier and contribute to the system of economic cooperation based on rules.
In light of this, he stressed: “Unfortunately, in many international trade situations, disputes arise due to a misunderstanding of Incoterms. For this reason, the ICC is trying to improve, organize and reformulate the texts. Hopefully, this measure will eliminate the misuse of Incoterms.”
Finally, and in clear reference to agreements that go beyond the economic circumstances of each country, the German specialist concluded: “The European Union-Mercosur agreement is a great opportunity to improve trade on the planet. It is an agreement on good practices. I hope it is ratified.”
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