INTERNATIONAL TRADE DISPUTES
CD: Reflecting on the last 12 months or so, what key trends have been influencing international trade disputes?
Geraets: Key trends influencing international trade disputes in the last 12 months include ongoing US-China tensions, which have evolved beyond tariffs to encompass technology transfer, intellectual property (IP) rights and national security concerns. Supply chain disruptions have led to disputes over export restrictions and resource nationalism. Rising protectionism has manifested in increased use of non-tariff barriers and subsidies. Disputes over digital trade and data flows have intensified, particularly regarding data localisation and cross-border data transfer rules. Conflicts related to the energy transition and environmental policies have emerged, with disagreements over carbon border adjustment mechanisms, green subsidies, including the Inflation Reduction Act, and measures aimed at facilitating the transition toward renewable energy. Additionally, the Russia-Ukraine war has reshaped global energy trade and led to sanctions-related disputes.
CD: What types of trade disputes are particularly prominent in today’s business world?
Geraets: Prominent sources of trade disputes today include tariff and non-tariff barriers, such as quotas, licensing requirements and technical regulations. IP rights violations remain a significant issue, particularly in sectors like pharmaceuticals and technology. Subsidy and dumping accusations are frequent, especially in industries like steel and agriculture, but recently also with regard to electric vehicles (EVs) from China, which have become subject to an anti-subsidy investigation in the European Union (EU), a proposed 100 percent tariff in the US, as well as various other restrictive measures in other jurisdictions. Digital trade disputes cover issues like data localisation, e-commerce taxation and platform regulation. Environmental and labour standards conflicts are increasing as countries implement green policies and environmental, social and governance-related measures. Agricultural trade disputes persist, often involving sanitary and phytosanitary measures. Technology transfer and national security concerns have become more prominent, particularly in sectors such as semiconductor manufacturing and 5G.
Oct-Dec 2024 issue
Mayer Brown