SHOULD MALAYSIA JOIN THE CISG?

Abstract

The United Nations Convention on the International Sale of Goods (‘CISG’) has been in effect since the early 1980s and some 94 member states of the United Nations have joined the Convention. These members account for close to 75% of world trade and include many of Malaysia’s largest trading partners. This essay reviews the major objections that have been raised to the CISG among common law nations, such as the United Kingdom, and how those objections have been managed by substantial economies, such as the United States, Canada, Australia, and Singapore, which are within the common law family of nations. Many Malaysian traders already are subject to the CISG as a result of the operation of private international law, and the conclusion of the essay is that, on balance, Malaysia may find it beneficial to join the CISG. Those issues which may arise can be managed through careful drafting and negotiation.