ABSTRACT
This chapter investigates the practical problems which could arise if the proposed Silk Road would become a reality. In essence, it is argued that diverse legal systems within the supply chain interacting with each other would be at the same level of diversity. As long as transnational laws are not ratified and, importantly, embraced by the business community and globally included into legal systems, a truly seamless trade system will not eventuate. As an example, the CISG is hailed as one of the most important harmonised sales laws, with 84 countries have ratified the convention. However, at the same time, legal advisors are routinely excluding the CISG as a governing sales laws. Even the EU has not managed to enact a contract law despite numerous attempts which unfortunately sit on the shelf gathering dust.
In essence, UNIDROIT and UNCITRAL must be given a mandate to devise necessary uniform trading laws and in addition FTAs and BITs within the Asian region are still too diverse to be useful in abolishing at and after the border red and green roadblocks.
This chapter will demonstrate that unless domestic trade laws are changed and are becoming more uniform the dream of the Silk Road will remain a dream. The chapter will also demonstrate that signs are emerging that certain aspects such as laws relating to Letters of credit and exemption clauses in bills of lading have found universal acceptance. In other words, harmonising in discrete areas is progressing.
