Global Trading

Marlies Hoecherl, Associate

The commercial world just keeps on getting smaller. And, thanks to internet trading, doing business worldwide is now potentially easier than ever before.

But just because we have the world at our fingertips, this doesn’t mean that we’re as free to trade as we might think. Different jurisdictions apply all over the world and what is legal in one country may attract criminal or civil liability in another. (Gambling is a notoriously tricky area – some countries impose severe penalties if their laws are breached.)

So, why is this on my mind? Well, over the last week or so, I’ve been working with a few multinational clients and it’s been fascinating chatting with them about their businesses and strategies. What seems clear is that, while opportunities to trade are constantly increasing, there is a perception that the law is an obstacle.

I take a different view: businesses which carefully and cleverly plan their route to foreign markets will find that the law is on their side.

So, before any trading or website activity is started it is essential to think about jurisdictions and whether you should restrict your activities to certain countries only.  Terms and conditions can deal with jurisdictional issues and international regulations like the new EU Law regulation known as Rome I, which will come into force in December 2009, may help as far as European contracts are concerned.  It provides a framework which applies in the EU and makes contractual jurisdiction more certain.  It allows two businesses from different member states to choose which law to apply if there is a contractual dispute and also provides a set of rules which apply if the contract does not have a jurisdiction clause.

This is all well and good, but what if my business partner is from an African or Asian jurisdiction or there are a number of parties from different places around the world involved in a contract? What if other national laws override the terms of our contract?

I don’t disagree that the law can make things complicated. But I know that there’s always a solution. Anticipating these issues before they become problems is essential, and it’s what we do whenever a client is thinking about branching into foreign markets.

The other great thing, of course, is that Capital Law has friends in different places – excellent lawyers based all round the world who can help with clients’ overseas issues (see Consulegis).

So, for me, the legal world has also become a smaller place. And this has to be good news for international business.


For more information please contact Marlies Hoecherl.  E: m.hoecherl@capitallaw.co.uk  T: 029 2047 4461

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