For the second week of our Annual Compliance Conference, we discussed key trade compliance issues impacting our clients globally. Specifically, we discussed the trade policy response of the US, EU and U.K. to ever increasing geopolitical disruption, global strategies for handling sanctions regulators and enforcement, and key global sanctions and export controls developments.
Trade policy response to geopolitical disruption – China and beyond
Tuesday 7 May
SPEAKERS: Tristan Grimmer (Partner, London), Sylwia Lis (Partner, Washington DC), Frank Pan (Partner, FenXun Shanghai), Arnoud Willems (Partner, Brussels), Zeyang Gao (Associate, London), Emily Thomson (Associate, London)
With trade policies increasingly being used as tools to respond to geopolitical disruption, this session focused on the key policy responses across the US, UK, China, and the EU.
Speakers summarised key policies being implemented and proposed – including both inbound and outbound screening regimes, export controls, foreign subsidy review, and trade remedies. Our speakers also reflected on how these policies have evolved as a consequence of shifting geopolitical relations and are being intentionally deployed to provide a holistic trade policy response, as well as how China is responding to such policies.
In relation to outbound investment controls, the session focused on the US Executive Order establishing a new outbound investment program and the proposal from the EU to bring in similar controls, which is subject to an initial assessment period before a formal proposal may be forthcoming later in 2025. These regimes intend to monitor outbound investment flows due to concerns that sensitive technologies or know-how could be made available to outside investors as part of these transactions, with competitive advantage being lost in relation to critical technologies. From an export controls perspective, the session noted developments across the EU, UK and US which are also focussed on critical technologies, including semiconductors, quantum computing, AI, additive manufacturing and biotechnology. The speakers offered insights into future trends in export controls and how we may expect them to continue developing in future.
The session concluded with insights into the EU’s expanding trade tool box including foreign subsidy review, which recently saw its first dawn raid at a Chinese security equipment manufacturer that was driven to a significant degree by national security concerns. It was observed that the deployment of these various trade policy tools remains a delicate balancing act, as the US and EU seek to de-risk their relationship with China without doing unintended harm to a trading relationship that holds the key in many sectors to the EU meeting its policy objectives, including environmental.
You can access the webinar recording here.
Global strategies for handling sanctions regulators and enforcement
Wednesday 8 May
SPEAKERS: Sven Bates (Of Counsel, London), Olof Konig (Partner, Stockholm), Terry Gilroy (Partner, New York), Meera Rolaz (Senior Associate, Zurich), Courtney Mackness (Associate, London)
With sanctions investigations and enforcements on the rise – including on a cross-jurisdictional basis – as well as more frequent sanctions-driven dealings with regulatory authorities more generally, it is imperative that organisations consider strategy when engaging with sanctions authorities. In this session, our speakers provided insights into the variety of ways of engaging with sanctions authorities, took a deep dive into varying approaches to licensing and notifications and discussed key considerations, trends and learnings in the context of sanctions investigations and enforcements across the US, UK, EU and Switzerland.
In relation to licensing and notifications, our speakers discussed the imminent need for licences for the provision of certain intra-group services and software following the expiry of the EU’s exemption on 20 June 2024, with a particular focus on the challenges in obtaining such licences as a result of the diverging approaches of Member States and key considerations when engaging with relevant authorities in relation to such licences. This position was contrasted to the approach of SECO, the relevant Swiss authority, followed by learnings from the UK given its ‘head start’ in licensing for similar activities as a result of never introducing a corresponding exemption. In addition, speakers discussed licensing and notifications in the context of divestments from Russia, including recent approaches to licensing for share sales where there are controlled products within the company’s portfolio, payment of exit taxes and relevant timings.
Leveraging considerable experience working on sanctions investigations and enforcement matters, including learnings from the first wave of investigations and enforcements arising as a result of Russian sanctions, our speakers discussed key points in the life cycle of a sanctions investigation, recent investigation and enforcement trends and the pinch-points for strategic decisions – including before making a voluntary self-disclosure – and engagements with sanctions authorities as part of these processes.
The session was concluded by the speakers outlining other considerations when engaging with sanctions authorities, particularly in the context of asset freezes.
You can access the webinar recording here.
Global sanctions and export controls update
Thursday 9 May
SPEAKERS: Ben Smith (Partner, London), Kana Itabashi (Partner, Tokyo), Julia Webster (Partner, Toronto), Andrew Rose (Senior Associate, London), Michael Amberg (Senior Associate, London), Johanna Asplund (Associate, London), Kimberley Fischer (Associate, Berlin)
Further geopolitical events in recent months have continued to impact the scope and severity of sanctions and export controls worldwide. In this session, our speakers provided an update on key recent developments in this area across the US, UK, Canada, Japan, and the EU.
Speakers covered key legislative and regulatory developments – including recent sanctions packages – as well as sanctions licensing insights, efforts to tackle circumvention, litigation updates, and recent guidance from enforcement agencies around the world.
On the sanctions side, the session focused heavily on Russia, with the further sanctions in the form of designations as well as product, service, and software controls, while also outlining other developments on sanctions regimes across the globe (notably with respect to the Middle East, Africa and China).
The session concluded with insights into the further evolution of export controls. The speakers provided an overview of how each jurisdiction is enhancing its export control measures to keep up with advanced technological developments, and offered an outlook on the both interesting and challenging times ahead for export control legislators around the world.
You can access the webinar recording here
The Annual Compliance Conference is held virtually across five weeks from 29 April – 6 June. Every year it attracts over 4,000 in-house senior legal and compliance professionals from across the world. With a speaker faculty from all regions of our global team, we will be delivering our cutting-edge insights and guidance virtually on key global compliance, investigations and ethics trends.
To register for the other sessions and access the recordings, click here.
