Supply chains operate in an environment shaped by trade issues (such as sanctions, export controls, and tariffs), where national security is an increasingly important consideration. International sanctions regimes are complex and often respond to volatile political landscapes. Businesses will need to navigate the often complex issues involved against a background of changing governmental trade and industrial policy.
The new reality of cooperation between international regulators in different jurisdictions requires businesses to adopt a coordinated, global approach for their supply chains in relation to such matters.
Failure to comply with sanctions regimes in one jurisdiction can result in the imposition of significant civil and criminal sanctions, including draconian fines and even imprisonment for individuals. Not adhering to national security laws that control foreign direct investment can bring an abrupt (and costly) end to new or proposed transactions. Similarly, business and commercial imperatives can be quickly put at risk where a business’s supply chain strategy is not informed by then current governmental trade and industrial policy.
Click here to read the full briefing on the changing global framework for trade and the impact on global supply chains.