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International Trade

Structuring Cross-Border Trade Agreements

Sophia Legal Konsults · · 5 min read

Allocation of regulatory risk is often the decisive term in a cross-border agreement. A short note on drafting for it.

In cross-border trade, commercial negotiation frequently concentrates on price and delivery, while regulatory risk is left to boilerplate. That allocation tends to surface only when a tariff classification is disputed or an export control changes.\n\nWell-drafted agreements address, at minimum: which party bears the cost of a change in law, how customs classification disputes are handled, the treatment of sanctions exposure, and the forum and governing law for disputes.\n\nParties should also consider whether treaty-based preferences are being relied upon, and whether the documentary requirements for those preferences are practically achievable.\n\nThis article is general information and does not constitute legal advice.