FREEDOM OF TRADE, COMMERCE AND INTERCOURSE- Federal Prologue

Ancient Silk Road trade routes across Eurasia.

The Constitution of India secures the freedom of Trade, Commerce and Intercourse within the Territory of India under Article 301, subject to reasonable restrictions & public interest ranging from Article 302- 307. It is worth mentioning that Part XIII (Art. 301-307) is in addition to Articles 14 & 19.

Since freedom of trade, commerce & intercourse is inextricable to the concept of federalism; it’s worthy to note similar laws in three of the most federal countries in the world- USA, Canada & Australia.

USA: Article 1, Section, 8 Clause 3 in US’s constitution is referred to as Commerce clause in the constitution of USA, which essentially lists the power of Congress, which by necessary implication has been interpreted to have robbed the states of their power to tax interstate commerce, while the Congress has the power to regulate commerce within states (also with foreign nations & Indian Tribes). This constitutes the freedom of commerce in the United States.

“Article 1 Section 8 Clause 3: The Congress shall have power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”

Canada: Section 121 of the Constitution Act, 1867 (formerly the British North America Act, 1867: a part of Canadian Constitution) entitles the Canadian Manufactures to have their growth, produce or manufacture free admission into any of the provinces, thereby rendering the borders of the provinces within Canada totally permeable.

“Section 121- All Articles of the Growth, Produce, or Manufacture of any one of the Provinces shall, from and after the Union, he admitted free into each of the other Provinces.”

Australia: Section 92 of the Constitution of Australia ensures that the Trade, Commerce & interstate intercourse via internal carriage or ocean navigation shall be absolutely free except for imposition of Uniform duties of Customs. However newly created states have an additional liability regarding the above for a period of two years. It appears that Section 92 also extends to Exclusive Economic Zone (and possibly Continental Shelf) of Australia.

“Section 92: On the imposition of uniform duties of customs, trade, commerce, and intercourse among the States, whether by means of internal carriage or ocean navigation, shall be absolutely free.

But notwithstanding anything in this Constitution, goods imported before the imposition of uniform duties of customs into any State, or into any Colony which, whilst the goods remain therein, becomes a State, shall, on thence passing into another State within two years after the imposition of such duties, be liable to any duty chargeable on the importation of such goods into the Commonwealth, less any duty paid in respect of the goods on their importation.”

To Be Continued....