Glossary
The international body administering the rules of trade between nations. Its panels still hear disputes, but the Appellate Body has had no members since 2020, so binding appeals are currently stalled.
International Trade and Sanctions
from International Transactions
International trade is governed by a framework of multilateral rules (the WTO agreements), bilateral free trade agreements (FTAs), and domestic legislation. Since Brexit, the UK has been building its own network of FTAs, independent of the EU's common commercial policy. Export controls restrict the transfer of military and dual-use goods and technology — an area of growing importance as geopolitical competition intensifies around semiconductor technology and advanced materials. Sanctions — restrictions imposed on countries, entities, or individuals for foreign policy or national security reasons — add a further layer of compliance that must be assessed in any transaction with an international element.
Governing Law
The legal system chosen by the parties to determine their contractual rights and obligations — English law is the most common choice for international commercial contracts.
Jurisdiction Clause
A contractual provision specifying which courts have the power to hear disputes arising from the agreement.
Sanctions
Restrictions imposed by governments on trade, financial transactions, or dealings with specific countries, entities, or individuals for foreign policy or security reasons.
Export Controls
Laws restricting the export of military, dual-use, and sensitive goods and technology to certain destinations or end-users.
BIT (Bilateral Investment Treaty)
An agreement between two states establishing protections for foreign investors, including rights to fair treatment and compensation for expropriation.
ISDS (Investor-State Dispute Settlement)
The arbitration mechanism through which foreign investors bring claims against host states under bilateral or multilateral investment treaties.
Transfer Pricing
The rules governing how transactions between related entities in different jurisdictions are priced, designed to prevent profit shifting to low-tax jurisdictions.
Force Majeure
A contractual clause excusing performance when extraordinary events beyond the parties' control (war, natural disaster, pandemic) make it impossible or impracticable.